Core Insights - The average 30-year fixed mortgage rate has dropped to 5.86%, while the 15-year fixed rate is at 5.41% [1][17][18] Current Mortgage Rates - The current national average mortgage rates are as follows: - 30-year fixed: 5.86% - 20-year fixed: 5.82% - 15-year fixed: 5.41% - 5/1 ARM: 5.97% - 7/1 ARM: 6.10% - 30-year VA: 5.50% - 15-year VA: 5.06% - 5/1 VA: 5.24% [6][17] Mortgage Payment Calculations - For a $300,000 mortgage at a 30-year term with a 5.86% rate, the monthly payment would be approximately $1,772, resulting in $337,826 paid in interest over the loan's life [8] - For the same mortgage amount at a 15-year term with a 5.41% rate, the monthly payment would increase to $2,437, with total interest paid being $138,650 [10] Adjustable Mortgage Rates - Adjustable-rate mortgages (ARMs) typically start with lower rates than fixed rates but can increase after the initial period. For example, a 5/1 ARM has a fixed rate for the first five years [11][12] - Recent trends show that ARM rates can be similar to or even higher than fixed rates, emphasizing the need for careful comparison when selecting a mortgage type [13] 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, and reducing debt [14] - Borrowers can also consider buying down their interest rates through discount points at closing, which can affect long-term savings [15][16] Future Rate Predictions - Forecasts from the MBA suggest that the 30-year mortgage rate will remain around 6.1% through 2026, while Fannie Mae predicts a rate near 6% by the end of the year [19]
Mortgage and refinance interest rates today, February 23, 2026: Looking for a rate below 6%? (How is 5.86%?)