Mortgage Rates Edge Lower as Summer Borrowing Season Heats Up
Homebuyers and homeowners considering a refinance received a modest reprieve this week. According to the latest data pulled from the Zillow lender marketplace on Sunday, August 2, 2026, average mortgage rates have drifted a bit lower compared to last week, signaling a slight cooling in borrowing costs after a volatile summer.
The benchmark 30-year fixed mortgage rate fell by 10 basis points to 6.65%, the 15-year fixed declined by 3 basis points to 6.01%, while the 5/1 adjustable-rate mortgage (ARM) ticked up by a single basis point to 6.65%. Although the moves are small, every basis point matters when you’re financing a six-figure mortgage, and a 10-basis-point drop on a 30-year loan can shave thousands off total interest paid over the life of the loan.
Today’s Average Mortgage Purchase Rates
Here’s a snapshot of national average mortgage rates for home purchases, based on the latest Zillow data:
- 30-year fixed: 6.65%
- 20-year fixed: 6.33%
- 15-year fixed: 6.01%
- 5/1 ARM: 6.65%
- 7/1 ARM: 6.18%
- 30-year VA: 6.11%
- 15-year VA: 5.83%
- 5/1 VA: 5.95%
Note: All figures are national averages rounded to the nearest hundredth of a percentage point. Your individual rate will depend on credit score, down payment, loan-to-value ratio, and lender-specific pricing.
Today’s Average Mortgage Refinance Rates
Refinance rates typically run slightly higher than purchase rates, though not always. Here are the current national averages for refinances:
- 30-year fixed refinance: 6.57%
- 20-year fixed refinance: 6.22%
- 15-year fixed refinance: 6.01%
- 5/1 ARM refinance: 6.68%
- 7/1 ARM refinance: 6.70%
- 30-year VA refinance: 6.16%
- 15-year VA refinance: 5.74%
- 5/1 VA refinance: 5.65%
30-Year vs. 15-Year: Which Term Wins in 2026?
The 30-year fixed remains the most popular mortgage product in America, and for good reason. Stretching payments over 360 months keeps monthly obligations manageable. But the 15-year fixed continues to offer a meaningfully lower rate, and the long-term savings can be substantial.
Consider a $300,000 mortgage as an illustration. At a 30-year term and a 6.41% rate, the monthly principal-and-interest payment would run about $1,878.48, with total interest of roughly $376,254 over the life of the loan. Drop to a 15-year term at 5.80%, and the monthly payment climbs to $2,499.27, but total interest paid shrinks dramatically to about $149,869. That’s a savings north of $226,000, but you’ll need the cash flow to absorb the higher monthly bill.
Fixed vs. Adjustable: Reading the Tea Leaves
With a fixed-rate mortgage, your interest rate is locked for the entire loan term, unless you refinance. An adjustable-rate mortgage (ARM) holds your rate steady for a set introductory period, then adjusts annually based on market conditions and contract caps. A 7/1 ARM, for example, fixes your rate for seven years before annual adjustments kick in for the remaining 23 years.
Historically, ARMs have started lower than fixed-rate loans, but the gap has narrowed. In some cases, fixed rates are actually pricing below ARMs right now, so borrowers should compare offers carefully before assuming an ARM is automatically cheaper.
How to Score the Lowest Rate Possible
Lenders price loans based on three big factors: down payment size, credit score, and debt-to-income ratio (DTI). A larger down payment reduces the lender’s risk, and so does a higher FICO Score and a lower DTI. If you can’t wait for market rates to fall, shoring up your personal financials is often the fastest path to a better quote.
Shop at least three to four lenders within a short window, typically 14 to 45 days, so multiple credit inquiries count as a single event on your credit report. And don’t just compare the headline interest rate. Look at the annual percentage rate (APR), which folds in fees and discount points, because the APR reflects the true cost of borrowing.
Outlook: Will Rates Drop Further?
According to the latest industry forecasts, the Mortgage Bankers Association (MBA) expects the 30-year mortgage rate to hover around 6.5% through the rest of 2026, while Fannie Mae projects a 30-year rate near 6.4% by year-end. The directional consensus is for gradual relief, but neither forecast predicts a dramatic plunge, so borrowers who are ready to transact shouldn’t expect to time a perfect bottom.
Current Mortgage Rates: FAQs
What are mortgage interest rates doing right now?
According to Zillow, mortgage rates are a bit lower compared to last week. The 30-year fixed fell by 10 basis points to 6.65%, the 15-year fixed declined by 3 basis points to 6.01%, and the 5/1 ARM rose by a single basis point to 6.65%.
What’s a good mortgage rate right now?
The average 30-year fixed mortgage rate is 6.65% today, per Zillow. Borrowers with excellent credit, larger down payments, and lower debt-to-income ratios (DTI) can typically negotiate rates below the national average.
Are mortgage rates expected to drop in 2026?
Forecasts from the MBA call for 30-year rates near 6.5% through the end of 2026, while Fannie Mae projects approximately 6.4% by year-end. Expect modest improvement rather than a sharp decline.
Should I choose a fixed-rate or adjustable-rate mortgage?
Fixed-rate loans lock in your payment for the life of the loan, ideal for long-term homeowners. ARMs offer lower introductory rates but carry the risk of higher payments after the initial fixed period. Run the numbers on your timeline and risk tolerance before choosing.
How can I lower my mortgage rate?
Improve your credit score, increase your down payment, reduce your debt-to-income ratio, and shop multiple lenders within a 14 to 45-day window so credit inquiries are batched together.
