Mortgage and refinance rates for January 13, 2026: Rates drop sharply after Trump announcement

Mortgage Rates Drop Following Policy Announcement

Mortgage rates have experienced a notable decline after President Trump revealed new initiatives aimed at improving home affordability and reducing borrowing costs. The downward trend in home loan rates continues. Based on Zillow’s latest figures, the average rate for a 30-year mortgage has fallen to 5.86%, a decrease of 19 basis points since last Friday. The 15-year fixed rate has also dipped, now averaging 5.28%. These statistics are compiled from Zillow’s network of lenders.

Current Mortgage Rates

Here are the most recent national averages for mortgage rates, according to Zillow:

• 30-year fixed: 5.86%
• 20-year fixed: 5.73%
• 15-year fixed: 5.28%
• 5/1 ARM: 6.15%
• 7/1 ARM: 6.12%
• 30-year VA: 5.52%
• 15-year VA: 5.01%
• 5/1 VA: 5.28%

These figures represent national averages and are rounded to two decimal places.

Today's Mortgage Refinance Rates

The following refinance rates are based on the latest Zillow data:

• 30-year fixed: 5.99%
• 20-year fixed: 5.76%
• 15-year fixed: 5.43%
• 5/1 ARM: 6.40%
• 7/1 ARM: 6.64%
• 30-year VA: 5.46%
• 15-year VA: 5.11%
• 5/1 VA: 5.36%

As with purchase rates, these are national averages rounded to the nearest hundredth. Typically, refinance rates are slightly higher than those for new home purchases.

Understanding Refinance Interest Rates

Yahoo Finance Mortgage Calculator

Using a mortgage calculator allows you to see how different loan terms and interest rates can impact your monthly payment. Try out the calculator to compare various scenarios and find what works best for your budget.

This tool factors in property taxes and homeowners insurance, giving you a more accurate estimate of your total monthly payment than just considering principal and interest alone.

Comparing 30-Year and 15-Year Fixed Mortgage Rates

Generally, 15-year fixed mortgages come with lower interest rates compared to 30-year loans. When weighing 15-year versus 30-year mortgages, remember that a shorter term means less interest paid over time, but higher monthly payments since the loan is repaid in half the time.

For instance, a $400,000 mortgage at 5.86% over 30 years results in a monthly payment of about $2,391 for principal and interest. Over the life of the loan, you would pay approximately $361,481 in interest.

Opting for a 15-year loan at 5.28% on the same amount increases your monthly payment to roughly $3,551, but total interest paid drops to around $179,928.

If the higher payment for a 15-year loan is out of reach, you can always make additional payments on a 30-year mortgage to pay off your loan sooner and reduce your total interest costs.

Fixed-Rate vs. Adjustable-Rate Mortgages

With a fixed-rate mortgage, your interest rate remains unchanged throughout the life of the loan, unless you choose to refinance.

An adjustable-rate mortgage (ARM) keeps your rate steady for a set period, after which it can fluctuate based on market conditions and the terms of your agreement. For example, a 7/1 ARM locks in your rate for seven years, then adjusts annually for the remainder of the loan.

Although ARMs may initially offer lower rates than fixed mortgages, the rate can rise after the introductory period. Recently, ARM rates have sometimes started higher than fixed rates, so the initial savings may not always be available.

Frequently Asked Questions About Mortgage Rates

What is the current 30-year fixed mortgage rate?

According to Zillow, the average 30-year fixed rate is 5.86% for new home loans and 5.99% for refinancing. These are national averages, so your actual rate may differ depending on your location and financial profile.

Are mortgage rates expected to decrease in 2026?

The Mortgage Bankers Association projects that the 30-year fixed rate will hover around 6.4% through 2026, based on its December outlook. Fannie Mae also anticipates rates above 6% for most of next year, with a possible dip to 5.9% in the last quarter of 2026.

How low could mortgage rates get by 2027?

Forecasts suggest mortgage rates will remain relatively stable in 2027. The MBA expects 30-year fixed rates to average 6.3% for most of the year, increasing slightly to 6.4% in the fourth quarter. Fannie Mae predicts rates will average about 5.9% throughout 2027.