Mortgage Rates Fall Below 6%: A Homebuyer's Opportunity
By John Nada·Jan 31, 2026·3 min read
Mortgage rates have fallen below 6%, creating a favorable environment for homebuyers. With rates stabilizing, now is the time to explore purchasing opportunities.
The average 30-year fixed mortgage rate has dropped below 6%, sitting at 5.91%, according to data from the Zillow lender marketplace. This is a significant moment for potential homebuyers, as the 15-year fixed rate stands at 5.44%. Zillow's rates often trend lower than those reported by Freddie Mac due to different data collection methods.
Current mortgage rates from Zillow reveal the following national averages: 30-year fixed at 5.91%, 20-year fixed at 5.86%, 15-year fixed at 5.44%, 5/1 ARM at 5.93%, and 7/1 ARM at 6.04%. Additionally, VA loans show competitive rates with a 30-year VA at 5.50% and a 15-year VA at 5.13%. These rates are rounded to the nearest hundredth, reflecting a market that is becoming more favorable for buyers.
Refinance rates are slightly higher, with the 30-year fixed refinance rate at 6.09% and the 15-year fixed refinance at 5.57%. Such trends often indicate a broader shift in the housing market, which has seen home prices stabilize compared to the rapid increases during the COVID-19 pandemic. Now, buyers can enter the market with a sense of optimism.
Zillow’s mortgage calculator can help potential buyers assess how these rates may affect their monthly payments. It allows users to input additional costs, such as private mortgage insurance and homeowners' association dues, to provide a more accurate estimate.
A 30-year fixed mortgage offers the advantage of lower and predictable monthly payments, but it comes with the downside of higher interest over time. In contrast, a 15-year fixed mortgage, while leading to higher monthly payments, allows buyers to save significantly on interest over the life of the loan.
Adjustable-rate mortgages (ARMs) can also be an option, providing lower initial rates but with the risk of increasing payments once the introductory period ends. It’s crucial for buyers to weigh these factors carefully. With mortgage rates expected to hover near 6% through 2026, according to the Mortgage Bankers Association and Fannie Mae, the current rates represent a window of opportunity for homebuyers.
Overall, the current housing landscape suggests that now is a favorable time to purchase a home. With rates declining from over 7% in early 2025 and stabilizing, buyers are encouraged to act. Timing the market can be tricky, but focusing on personal circumstances often yields the best outcomes. Whether you're aiming for a fixed or adjustable-rate mortgage, understanding the nuances of each option is vital.
In conclusion, the drop in mortgage rates below 6% signifies a promising shift for homebuyers. With the right strategies and a clear understanding of personal finances, many can take advantage of this favorable market condition. Now’s the time to explore options and make informed decisions in the housing market.