Mortgage rates fell slightly during the week. The average 30-year fixed rate fell two basis points, according to Freddie Mac 6.09%. This is a minimum of three basis points above the three-year low of 6.06%. The 15-year fixed rate fell six basis points 5.44%.

Discounts on new homes have overtaken the resale market “for the first time in recent history,” Realtor.com reported Thursday. It reduced prices to almost one in five new homes by the end of 2025.

Here are the current mortgage rates, according to the latest data from Zillow:

• Fixed at 30 years: 5.88%

• Fixed at 20 years: 5.73%

• Fixed at 15 years: 5.44%

• 5/1 ARM: 6.08%

• 7/1 ARM: 5.84%

• VA of 30 years: 5.52%

• 15-year VA: 5.11%

• 5/1 GO: 5.08%

Remember, these are national averages and have been rounded to the nearest hundredth.

Here are the current mortgage refinance rates, according to the latest data from Zillow:

• Fixed at 30 years: 6.00%

• Fixed at 20 years: 5.86%

• Fixed at 15 years: 5.48%

• 5/1 ARM: 6.15%

• 7/1 ARM: 6.18%

• VA of 30 years: 5.44%

• 15-year VA: 5.15%

• 5/1 GO: 5.03%

Again, the figures provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are usually higher than rates when you buy a home, although this is not always the case.

Learn more about the 7 home refinancing options.

Your mortgage rate plays a big role in how much your monthly payment will be. Use this mortgage calculator to see how your mortgage amount, rate and term will affect your monthly payments:

You can bookmark Yahoo Finance Mortgage payment calculator and keep it handy for future use as you shop for homes and lenders.

A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose between two types of rates: fixed or adjustable.

A fixed rate mortgage locks in your rate for the life of your loan. For example, if you get a 30-year mortgage with an interest rate of 6%, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.

An adjustable rate mortgage it locks in your rate for a predetermined period and then adjusts it periodically. Let’s say you get a 7/1 ARM with an intro rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once a year for the last 23 years of your term. Whether your rate goes up or down depends on a number of factors, including the economy and the housing market.

At the beginning of your mortgage term, most of your monthly payment goes towards interest. Your monthly payment a principal of the mortgage and the interests are maintained over the years; however, less and less of your payment goes toward interest and more goes toward the mortgage principal or the amount you originally borrowed.

A 30-year fixed rate mortgage is a good option if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term, and you’ll pay a lot more in interest over the years.

You may want to consider a 15-year fixed rate mortgage if you want to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and because you’re cutting your repayment time in half, you’ll save a lot on interest in the long run. But you’ll need to make sure you can comfortably afford the higher monthly payments that come with 15-year terms.

Typically, an adjustable rate mortgage could be good if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, and then change after a predetermined period of time. However, 5/1 and 7/1 ARM rates have similar (or even higher) 30-year fixed rates recently. Before you get an ARM just for a lower rate, compare your rate options from term to term and from lender to lender.

Mortgage rates have generally fallen since the end of last May, and home loan rates are above three-year lows, according to Freddie Mac.

Economists don’t expect drastic drops in mortgage rates until late 2026. Even with the most recent rate break in federal funds ratemortgage rates continue to hover in the low 6% range.

According to Freddie Mac, the national average 30-year mortgage fell two basis points to 6.09% during the week, while the average 15-year rate fell six basis points to 5.44%.

According to its January forecast, the Mortgage Bankers Association expects the 30-year mortgage rate to be near 6.1% through 2026. Fannie Mae also expects the 30-year rate to be near 6% through next year.

Mortgage rates are likely to remain little changed in 2027. The MBA projects 30-year fixed rates at 6.2% to 6.3% in 2027. Fannie Mae predicts average rates near 6% for all of 2027.