Core Insights - Current mortgage rates are experiencing a decline, with the average 30-year fixed mortgage rate at 5.85% and the 15-year fixed rate at 5.36%, which may encourage homebuyers and mortgage refinancers to apply for loans soon [1][16]. Current Mortgage Rates - The national average for various mortgage types includes: - 30-year fixed: 5.85% - 20-year fixed: 5.64% - 15-year fixed: 5.36% - 5/1 ARM: 5.81% - 7/1 ARM: 5.71% - 30-year VA: 5.36% - 15-year VA: 5.15% - 5/1 VA: 4.99% [6][16]. Mortgage Payment Calculations - For a $300,000 mortgage at a 30-year term with a 5.85% rate, the monthly payment would be approximately $1,770, resulting in $337,136 paid in interest over the loan's life [7]. - For the same mortgage amount at a 15-year term with a 5.36% rate, the monthly payment would increase to $2,429, with total interest paid being $137,224 [9]. Adjustable Mortgage Rates - Adjustable-rate mortgages (ARMs) typically start with lower rates than fixed rates but can increase after the initial fixed period. For instance, a 5/1 ARM maintains the same rate for the first five years before adjusting annually [10][11]. - Recent trends show that ARM rates can sometimes be similar to or higher than fixed rates, emphasizing the importance of comparing lenders and rates [12]. Factors Influencing Mortgage Rates - Lenders offer lower mortgage rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios. Strategies to secure lower rates include saving more, improving credit scores, or reducing debt [13]. - Borrowers can also consider buying down their interest rates through discount points at closing, which can lead to lower monthly payments [14][15]. Future Rate Predictions - Forecasts from the MBA suggest that the 30-year mortgage rate may remain around 6.1% through 2026, while Fannie Mae predicts a similar rate near 6% by the end of the year [18].
Mortgage and refinance interest rates today, February 16, 2026: Rates fall to new lows