WASHINGTON, DC — Mortgage borrowing costs moved higher again in Zillow lender marketplace data for Sunday, Sept. 20, 2026, with the average 30-year fixed loan rising back above 7 percent. The national average for that loan type climbed 13 basis points from a week earlier to 7.04 percent.
Other common loan products also moved up, though not as sharply. The 20-year fixed mortgage rose 3 basis points to 6.82 percent, while the 5/1 adjustable-rate mortgage increased 19 basis points to 7.04 percent. Zillow’s figures are national averages, rounded to the nearest hundredth.
What Today’s Purchase Mortgage Rates Look Like Across Common Loan Terms
Alongside the headline 30-year rate, Zillow’s data showed a mixed picture across other purchase mortgage options. The 15-year fixed rate stood at 6.56 percent, while the 7/1 ARM was listed at 6.51 percent.
Government-backed loan rates were lower than the conventional 30-year average. Zillow put the 30-year VA rate at 6.48 percent, the 15-year VA rate at 6.12 percent, and the 5/1 VA rate at 6.34 percent. Those figures offer a snapshot of how prices vary by term and loan type in the national market.
Refinance Rates Also Rose, With the 30 Year Fixed at 7.01 Percent
Homeowners looking to refinance also faced higher prices in Zillow’s latest data. The 30-year fixed refinance rate was 7.01 percent, just below the purchase rate but still above the 7 percent mark.
Other refinance averages included 6.78 percent for the 20-year fixed, 6.42 percent for the 15-year fixed, and 7.04 percent for the 5/1 ARM. Zillow also listed a 6.67 percent rate for the 7/1 ARM and 6.69 percent for the 30-year VA refinance option.
The 5/1 VA refinance rate was 5.84 percent, which was the lowest refinance figure listed in the data.
Why A 15 Year Loan Costs Less In Interest But Demands More Each Month
Zillow’s explanation of fixed-rate loans underscores the tradeoff many buyers face. A 30-year mortgage remains popular because the longer term spreads payments over 360 months and keeps the monthly bill lower.
A 15-year mortgage usually carries a lower rate, but the shorter repayment period means the borrower pays off the balance faster and saves on long-term interest only by taking on a larger monthly payment. Zillow illustrated that difference with a $300,000 loan example.
Using that example, a 30-year mortgage at 6.41 percent would produce a monthly principal-and-interest payment of about $1,878.48 and total interest of $376,254 over the life of the loan. A 15-year mortgage at 5.80 percent would raise the payment to $2,499.27, but total interest would fall to $149,869.
How Fixed Rates And Adjustable Rates Differ For Borrowers
Fixed-rate mortgages lock in the interest rate for the full life of the loan unless the homeowner refinances. That gives borrowers certainty, even if market rates move after the loan closes.
Adjustable-rate mortgages work differently. They keep the rate unchanged for a set period, then reset according to market conditions and contract limits. In a 7/1 ARM, for example, the rate stays fixed for seven years before changing each year for the remaining 23 years of the term.
Zillow noted that ARMs often begin with lower introductory rates, but that advantage can disappear later. The company also said some fixed rates have recently started lower than adjustable rates, so borrowers need to compare current quotes rather than assume one structure is always cheaper.
Zillow Says Credit Scores, Down Payments, And Debt Levels Still Matter Most
Zillow’s guidance on mortgage shopping focused less on timing the market and more on borrower readiness. Lenders generally offer their best rates to applicants with strong credit, larger down payments, and lower debt-to-income ratios.
That means a household trying to improve its borrowing power may have better luck by strengthening its finances than by waiting for rates to fall. Zillow suggested saving more, improving credit, and paying down debt before applying if possible.
The company also advised shoppers to get preapproved by three or four lenders within a short window. That approach makes comparisons more accurate and limits the effect on a credit score.
Forecasts Still Point To Lower Rates Later In 2026
Even with this week’s uptick, the longer-range outlook is still softer than current levels. Zillow pointed readers to forecasts that have the Mortgage Bankers Association expecting the 30-year mortgage rate to average between 6.6 percent and 6.7 percent through the rest of 2026.
Fannie Mae’s forecast is a little higher, calling for a 30-year rate between 6.7 percent and 6.8 percent through year-end. Those projections suggest rates may ease from current levels, but not by a dramatic amount.
For now, Zillow’s latest national averages show borrowers still facing a market where the 30-year benchmark sits above 7 percent and refinance savings depend heavily on the type of loan and the strength of the borrower’s profile.
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