Mortgage and refinance interest rates today, January 20, 2026: Rates have plummeted over the last year

Core Insights - Mortgage rates in 2026 have started significantly lower than in 2025, with the average 30-year fixed mortgage rate at 5.90%, which is 82 basis points lower than the previous year [1] - The 15-year fixed mortgage rate has also decreased, now standing at 5.36%, down by 63 basis points [1] - A survey by Yahoo Finance indicates that some lenders are offering mortgage rates at or below 5.50% [1] Current Mortgage Rates - The current national average mortgage rates include: - 30-year fixed: 5.90% - 20-year fixed: 5.84% - 15-year fixed: 5.36% - 5/1 ARM: 6.11% - 7/1 ARM: 6.28% - 30-year VA: 5.48% - 15-year VA: 5.07% - 5/1 VA: 5.17% [5] Refinance Rates - Current refinance rates are generally higher than purchase rates, with the national averages rounded to the nearest hundredth [3] Mortgage Comparison - A comparison of 30-year and 15-year fixed mortgage rates shows that while 15-year rates are lower, monthly payments are higher due to the shorter term [7] - For a $400,000 mortgage at a 30-year term with a 5.90% rate, the monthly payment is approximately $2,373, leading to a total interest payment of $454,117 over the term [8] - Conversely, a $400,000 15-year mortgage at a 5.36% rate results in a monthly payment of about $3,239, with total interest paid being $182,965 [8] Adjustable-Rate Mortgages (ARMs) - Fixed-rate mortgages lock in the interest rate from the start, while adjustable-rate mortgages (ARMs) have a fixed rate for an initial period before adjusting based on market conditions [10][11] - ARMs may start with lower rates compared to fixed rates, but there is a risk of rate increases after the initial period [12] Future Rate Predictions - The Mortgage Bankers Association (MBA) forecasts that the 30-year mortgage rate will be around 6.4% through 2026, with Fannie Mae predicting rates above 6% for the next year but dropping to 5.9% in Q4 2026 [14] - For 2027, the MBA anticipates rates to remain stable at around 6.3%, while Fannie Mae expects an average near 5.9% for the year [15]