Mortgage and refinance interest rates today, January 16, 2026: Annual rates plummet by 98 basis points

Core Insights - Mortgage rates have significantly decreased compared to last year, with the average 30-year fixed mortgage rate dropping from over 7% to 6.06%, a reduction of 98 basis points [1] Current Mortgage Rates - The current national average mortgage rates include: - 30-year fixed: 6.05% - 20-year fixed: 5.92% - 15-year fixed: 5.47% - 5/1 ARM: 6.39% - 7/1 ARM: 6.29% - 30-year VA: 5.41% - 15-year VA: 5.08% - 5/1 VA: 5.12% - 30-year FHA: 5.83% [6] Refinance Rates - Current mortgage refinance rates are generally higher than purchase rates, with the following averages: - 30-year fixed: 5.86% - 20-year fixed: 5.82% - 15-year fixed: 5.33% - 5/1 ARM: 6.11% - 7/1 ARM: 6.14% - 30-year VA: 5.46% - 15-year VA: 5.09% - 5/1 VA: 5.16% [5] Trends in Mortgage Rates - Mortgage rates have been on a downward trend since the end of May, remaining lower than the same period last year. However, economists do not anticipate significant declines in mortgage rates through the end of 2026 [14] - The MBA forecasts the 30-year mortgage rate to be around 6.4% through 2026, while Fannie Mae predicts rates above 6% next year, potentially dipping to 5.9% in Q4 2026 [17] Future Projections - For 2027, the MBA expects 30-year fixed rates to average 6.3% for most of the year, increasing to 6.4% in Q4, while Fannie Mae anticipates average rates near 5.9% for the entire year [18]