What's a good mortgage interest rate in 2026?

Published: Friday, January 9, 2026 at 7:26 pm

What's a Good Mortgage Rate in 2026?

The mortgage landscape has shifted significantly since the historically low rates of 2020 and 2021. Inflation and subsequent interest rate hikes in 2022 and 2023 have reshaped the market. However, the Federal Reserve's rate cuts in late 2024 and 2025 have begun to ease borrowing costs. Mortgage rates declined by approximately one percentage point in 2025, and further declines are anticipated.

As of early 2026, the average mortgage purchase rate for a 30-year term is 5.87%, while the 15-year option averages 5.25%. Finding rates lower than these averages can be considered a "good" rate. However, these rates are subject to daily fluctuations, influenced by factors like inflation readings and Federal Reserve meetings.

To secure a favorable rate, prospective homebuyers should shop around and obtain quotes from multiple lenders. Comparing offers and considering closing costs and fees is crucial. A larger down payment, exceeding the typical 20% requirement, can also lead to lower rates. Maintaining a good credit score and managing debt are also important factors.

BNN's Perspective:

The current mortgage rate environment presents a mixed bag for potential homebuyers. While rates are not as low as they were during the pandemic, they are aligning with historical averages. The possibility of further rate decreases offers a degree of optimism. Prudent financial planning and careful comparison shopping are essential for navigating the market effectively.

Keywords: mortgage rates, interest rates, 2026, Federal Reserve, inflation, homebuying, refinancing, 30-year term, 15-year term, lenders, down payment, credit score

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