WASHINGTON, DC — Mortgage and refinance rates were mixed Monday, with Zillow’s latest lender-marketplace averages showing small moves across purchase and refinance loans. The 30-year fixed purchase rate held at 6.91%, while the 15-year fixed purchase rate rose to 6.37% and the 5/1 ARM purchase rate came in at 6.85%.
For buyers and homeowners comparing options, the spread between loan types remained important. The 30-year fixed refinance rate also sat at 6.91%, while shorter terms and adjustable loans moved differently, underscoring how quickly borrowing costs can diverge even when the overall picture looks steady.
Zillow’s national purchase rates show small gaps between fixed and adjustable loans
On the purchase side, Zillow listed the 20-year fixed rate at 6.79% and the 7/1 ARM at 6.60%. VA borrowers saw lower average pricing, with the 30-year VA rate at 6.26%, the 15-year VA rate at 5.84% and the 5/1 VA rate at 5.89%.
Those figures are national averages rounded to the nearest hundredth, so actual quotes can vary by lender, location and borrower profile. Even so, the data gives shoppers a quick snapshot of how lenders are pricing different structures at the start of the week.
Refinance borrowers saw a slightly different set of numbers
Refinance pricing did not mirror purchase pricing exactly. Zillow showed a 20-year refinance rate of 6.76% and a 15-year refinance rate of 6.29%, both a bit below the comparable purchase options. The 5/1 ARM refinance rate was 6.05%, which was lower than the purchase ARM average.
Other refinance averages included 7/1 ARM at 6.63%, 30-year VA at 6.33%, 15-year VA at 5.92% and 5/1 VA at 5.93%. The 30-year fixed refinance rate matched the purchase rate at 6.91%, a reminder that refinancing does not always come with a lower headline number.
Why a 30-year loan can look affordable even when interest costs add up
Yahoo Finance’s mortgage calculator section highlights why many households still gravitate toward 30-year loans. Stretching payments over 360 months keeps the monthly principal-and-interest bill lower than a shorter-term mortgage, which can help first-time buyers fit a home into their budget.
At the same time, longer terms mean more time for interest to accumulate. The calculator example showed how a $300,000 mortgage at 6.70% would produce a monthly principal-and-interest payment of about $1,935.04 and total interest of about $396,614 over the life of the loan.
Fifteen-year loans cost more each month but cut total interest sharply
The 15-year mortgage option came in at 6.37% for purchases, below the 30-year fixed average. That lower rate comes with a tradeoff: the borrower must pay the same debt back in half the time, which pushes the monthly bill higher.
Using the calculator example, the same $300,000 loan at a 15-year term and 6.04% rate would carry a monthly principal-and-interest payment of about $2,537.41. The total interest would fall to about $156,734, which is far less than the 30-year example even though the payment is larger.
Adjustable-rate mortgages remain a mixed bet for today’s borrowers
Adjustable-rate mortgages are still a key part of the market because they usually begin with lower introductory rates before resetting later. A 5/1 ARM keeps the same rate for five years and then adjusts once a year, which can appeal to buyers who expect to move before the first reset.
But lenders are not always pricing ARMs below fixed loans anymore. Zillow’s numbers showed the 5/1 ARM purchase rate at 6.85%, only slightly below the 30-year fixed rate and above some longer-term fixed options, while the refinance ARM average was even lower at 6.05%.
What Zillow says may help borrowers qualify for better pricing
Zillow’s guidance points to the same factors lenders commonly use when setting rates: stronger credit, a larger down payment and a lower debt-to-income ratio. Borrowers who can improve those figures before applying may have a better chance of seeing a more favorable quote.
The piece also notes that some shoppers look at discount points or temporary buydowns to lower the early years of a loan. A buydown can reduce the initial rate, but it costs money at closing, so buyers need to decide whether the savings will last long enough to justify the upfront expense.
Forecasts cited in the piece suggest the rate picture may remain relatively tight for the rest of 2026. The Mortgage Bankers Association expects the 30-year mortgage rate to average between 6.6% and 6.7%, while Fannie Mae projects a range of 6.7% to 6.8% through year-end.
More on what homes, rents and new builds are doing near you, on RHS Commoner.
