Core Insights - The average 30-year mortgage rate is currently in the low- to mid-6% range, with expectations to remain above 6% for the foreseeable future, although slight decreases may occur in 2026 [1][23]. Group 1: Mortgage Rate Strategies - Government-backed loans, such as VA, FHA, and USDA loans, often have lower rates than conventional loans, with an example showing a 30-year FHA loan at 5.88% compared to a conventional loan at 6.29% [2][3]. - Shorter-term loans, like 15-year mortgages, typically offer lower rates, with a 5.76% average compared to 6.29% for 30-year loans, potentially saving nearly $300,000 in interest over the loan term [6][7]. - Buying discount points can reduce the interest rate, with a cost of approximately 1% of the loan amount to lower the rate by 0.25%, exemplified by a reduction from 6.22% to 5.97% [8][9]. - Temporary buydowns can lower rates for a set number of years, such as a 3-2-1 buydown, which decreases the rate by 3% in the first year, 2% in the second, and 1% in the third [12][13]. - Improving credit scores can lead to better interest rates, with a 780 credit score yielding an average rate of 6.14% compared to 6.59% for scores under 680 [14][15]. - Shopping around for lenders can yield significant savings, with just four quotes potentially saving over $1,200 annually in interest [16][17]. - Adjustable-rate mortgages (ARMs) often have lower initial rates compared to fixed-rate mortgages, but they carry the risk of rate adjustments after a set period [18][19]. - Waiting for rates to potentially drop below 6% may be an option, with Fannie Mae projecting a rate of 5.9% by the end of 2026, although predictions vary [20][23].