Mortgage and Refinance Interest Rates Stabilize on January 25, 2026

Jan 26, 2026, 2:53 AM

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As of January 25, 2026, mortgage and refinance interest rates have leveled out, providing a sense of stability for potential homebuyers and current homeowners looking to refinance. According to Zillow, the average 30-year fixed mortgage rate is currently 6.00%, while the average 15-year fixed rate is at 5.50%.

For those considering adjustable-rate mortgages (ARMs), the average 5/1 ARM is at 6.15%, and the 7/1 ARM is slightly higher at 6.35%. Additionally, the current average rates for VA loans are competitive, with the 30-year fixed rate set at 5.375% for both purchase and refinance loans.

Homeowners looking to refinance can take advantage of today's rates, with the average refinance rates reflecting a similar trend. The 30-year fixed refinance rate is currently at 6.12%, while the 15-year fixed refinance rate stands at 5.60%. Such rates provide an opportunity for significant savings on monthly payments, particularly for those who previously struggled to refinance due to low home equity.

In recent years, various refinance programs have emerged to assist homeowners with limited equity. Programs like the Fannie Mae High LTV Refinance Option (HIRO) and Freddie Mac's Enhanced Relief Refinance (FMERR) allow homeowners to refinance even if their mortgage balance is close to or exceeds the market value of their homes. Although these programs are currently paused, many homeowners are discovering they can still refinance thanks to rising home equity and low interest rates.

Understanding Fixed vs. Adjustable Rates

When deciding between fixed and adjustable-rate mortgages, it's essential to consider your financial goals. Fixed-rate mortgages offer the security of a locked-in rate for the entire loan term, while ARMs can provide lower initial rates that adjust after a specified period. The choice between these options depends on individual financial circumstances and risk tolerance.

How to Secure a Lower Rate

To secure the best possible mortgage rate, borrowers should focus on improving their credit score, increasing their down payment, and reducing their debt-to-income ratio. Lenders typically offer the most favorable rates to borrowers with strong financial profiles. Prospective buyers are advised to shop around and compare offers from multiple lenders to ensure they are getting the best deal available.

Market Outlook

Looking ahead, mortgage rates are expected to remain relatively stable. According to forecasts, the 30-year mortgage rate may hover around 6.4% throughout 2026, which indicates that while rates may not drop significantly, they are unlikely to rise dramatically soon. This stability can be beneficial for both homebuyers and current homeowners contemplating refinancing.

In conclusion, the current mortgage and refinance interest rates provide a favorable environment for both purchasing and refinancing homes. Homeowners should evaluate their options carefully and consider taking advantage of the available programs to potentially lower their monthly payments and overall financial obligations. With rates levelled out and various refinancing opportunities accessible, now may be an opportune time to act for those looking to optimize their mortgage expenses.

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