Today’s mortgage interest rates have seen a slight decrease, but the 30-year rate has been hovering around 6% for the past few weeks.
According to data provided to BW by Zillow, the average interest rate on a 30-year fixed-rate mortgage is now 5.96% APR. This marks a 15 basis points drop from yesterday and a five basis points decrease from a week ago. (Refer to the chart below for more details.) A basis point equals one one-hundredth of a percentage point.
Mortgage rates have shown relative stability over the past two weeks. For those considering purchasing a new home in 2026 and can afford the current rates, now might be a good time to start exploring options.
Average mortgage rates over the last 30 days
📉 When can we expect a drop in mortgage rates?
Mortgage rates are subject to constant fluctuations, with a significant portion of rate determination influenced by reactions to new inflation reports, job figures, Federal Reserve meetings, global events, and more. Even minor changes in the bond market can impact mortgage pricing.
This week, analysts are closely monitoring the December jobs report set to release on Friday.
The end of 2025 was characterized by missing and delayed federal economic data, leading to analysts relying on alternative sources and outdated figures to gauge the country’s economic status. With the new year commencing, real-time employment data is finally becoming available, offering economists a more accurate employment snapshot.
Depending on the December jobs report outcome, mortgage rates may either decrease further if unemployment rises or increase slightly if unemployment declines. The Federal Reserve plays a crucial role in this scenario, as rising unemployment may prompt them to reduce borrowing rates, while falling unemployment could lead to a focus on curbing inflation through rate hikes or maintaining current rates.
In January of the previous year, President Trump announced plans to raise tariffs on various key trade partners, impacting the economy throughout 2025.
As we enter 2026, executive actions are being taken for a U.S.-led change in regime in Venezuela. While the outcome remains uncertain, it serves as a reminder of the influence of international relations on financial markets.
🔁 Is refinancing a good idea?
Consider refinancing if today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate, and if you plan to remain in your home long enough to recoup closing costs.
Given the current rate environment, it may be prudent to think about refinancing if your existing rate is around 6.46% or higher.
Additionally, align your refinancing goals with your financial objectives. Whether you aim to lower monthly payments, shorten the loan term, or leverage home equity, evaluate the overall costs of options like a cash-out refinance versus a rate-and-term refinance to make an informed decision.
To explore potential savings and understand the break-even point for refinancing costs, use BW’s refinance calculator.
🏡 Is it a good time to start house hunting?
The ideal time to start shopping for a home depends on your ability to comfortably afford a mortgage at current rates.
If the answer is yes, focus on getting preapproved, comparing lender offers, and determining a monthly payment that fits your budget instead of worrying about potential rate fluctuations. Remember, you can always refinance later on.
Utilize BW’s affordability calculator to estimate your monthly payment and consider paying down debts and increasing your down payment savings to enhance your buyer profile and secure a better interest rate in the future.
🔒 Should I lock in my rate?
If you have a rate quote that satisfies you, consider locking in your mortgage rate, especially if your lender offers a float-down option to take advantage of potential rate drops during the lock period.
Rate locks provide protection against rate increases while your loan is in process, offering peace of mind amidst market fluctuations.
🤓 Nerdy Reminder: Mortgage rates can fluctuate daily, even hourly. It’s advisable to commit if you’re content with the offer you have.
🧐 Why does the online rate differ from my quote?
The advertised rate is typically a sample rate for a borrower with excellent credit, substantial down payment, and payment of mortgage points, which may not align with every borrower’s situation.
In addition to external market factors, your personalized quote considers your location, property type, and overall financial profile, meaning even individuals with similar credit scores may receive different rates.
👀 Can I secure the rate I saw today if I apply now?
Possibly, but keep in mind that even personalized rate quotes can change until you lock in your rate due to lenders adjusting pricing multiple times a day in response to market shifts.