Mortgage and refinance interest rates today, January 20, 2026: Annual rates plummet

Core Insights - Mortgage rates in 2026 have started 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 decreased to 5.36%, down 63 basis points from last year [1] - A survey by Yahoo Finance indicates that some lenders are offering rates at or below 5.50% [1] Current Mortgage Rates - The current national average for various mortgage types includes: - 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 30-year fixed refinance rate at 6.01% [13] Mortgage Comparison - A $400,000 mortgage with a 30-year term at 5.90% results in a monthly payment of approximately $2,373, leading to total interest payments of $454,117 over the term [8] - Conversely, a 15-year mortgage at 5.36% would require a monthly payment of about $3,239, resulting in total interest payments of $182,965 [8] Adjustable vs. Fixed Rates - 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 MBA forecasts that the 30-year mortgage rate will be around 6.4% through 2026, while Fannie Mae predicts a dip to 5.9% in Q4 2026 [14] - For 2027, the MBA expects rates to average 6.3%, with Fannie Mae estimating rates near 5.9% for the entire year [15]