WASHINGTON, DC — Mortgage rates moved higher this week, according to Zillow lender marketplace data, adding to the cost of buying or refinancing a home. The average 30-year fixed mortgage rate rose to 6.67%, up 12 basis points from a week earlier, while the 15-year fixed climbed to 6.04%.
The 5/1 adjustable-rate mortgage saw a larger jump, rising 38 basis points to 6.26%. Zillow’s figures are national averages rounded to the nearest hundredth, so actual offers can vary by borrower, lender, and loan profile.
Refinance rates also sat above the comparable purchase figures in several cases, a reminder that homeowners shopping to replace an existing loan may face a different pricing picture than buyers entering the market for the first time.
The latest purchase rates show a wide spread across loan types
Zillow’s current purchase-rate snapshot shows the 20-year fixed mortgage at 6.66%, just below the 30-year fixed, while the 7/1 ARM is at 6.53%. Government-backed loans remain lower than many conventional options, with the 30-year VA at 6.32%, the 15-year VA at 5.91%, and the 5/1 VA at 5.93%.
The 30-year fixed remains the most common choice because it keeps monthly principal and interest payments lower by stretching repayment over 360 months. That lower monthly bill can make homeownership more manageable, even though borrowers pay more interest over the life of the loan.
By contrast, shorter terms usually carry lower rates but require bigger monthly payments. Zillow’s numbers highlight how the tradeoff still matters in today’s market, where the gap between loan types can be meaningful for household budgets.
Refinance borrowers are seeing slightly different pricing
For homeowners considering a new loan to replace an old one, Zillow’s refinance averages show the 30-year fixed at 6.73% and the 15-year fixed at 6.11%. The 20-year refinance rate stands at 6.68%, while the 5/1 ARM is 6.50% and the 7/1 ARM is 6.63%.
Among VA refinance options, the 30-year is 6.23%, the 15-year is 5.86%, and the 5/1 VA is 6.01%. Those figures matter because refinancing can make sense only if the new terms improve the borrower’s overall financial picture after closing costs and fees are included.
The gap between purchase and refinance rates is not always the same, and it can shift by product and market conditions. Zillow notes that refinance pricing is often higher than purchase pricing, though that is not guaranteed in every case.
A $300,000 loan shows how rate changes affect monthly costs
The difference between a 30-year and a 15-year mortgage can be seen clearly in a sample loan. On a $300,000 mortgage at 6.41% over 30 years, the principal-and-interest payment would be about $1,878.48 a month, and the borrower would pay $376,254 in interest over the life of the loan.
With the same loan amount at 5.80% over 15 years, the monthly payment rises to $2,499.27. But the total interest paid falls sharply to $149,869, showing how a shorter term can save money over time even while increasing the monthly obligation.
That tradeoff is one reason buyers often compare more than one term before locking in a mortgage. A lower payment may help with near-term affordability, while a shorter term may better fit someone focused on reducing long-term interest expense.
Fixed rates give certainty while ARMs trade it for an initial discount
Fixed-rate mortgages lock in the same interest rate for the life of the loan unless the borrower later refinances. That certainty can be valuable when rates are moving higher, because the monthly principal-and-interest payment does not change with market conditions.
Adjustable-rate mortgages work differently. They hold the same rate for a set period and then reset, often once a year, based on market conditions and the limits written into the loan contract. A 7/1 ARM, for example, stays fixed for seven years before adjusting annually for the remaining term.
ARMs often begin with lower rates than fixed loans, but that advantage can fade if the initial period ends and rates rise. Zillow notes that some fixed rates have recently started lower than some adjustable options, which makes comparison shopping especially important.
Borrowers with stronger finances still have the best shot at lower pricing
Zillow says lenders generally reserve the lowest rates for borrowers with larger down payments, strong credit scores, and low debt-to-income ratios. That means the best path to a better offer may come from improving personal finances before applying, rather than waiting for the market to move lower.
The company also recommends comparing multiple lenders by seeking preapproval from three or four companies within a short period. Doing so can make the offers easier to compare and limit the effect on a credit score.
Borrowers are urged to look beyond the interest rate and examine the annual percentage rate, or APR. APR includes some fees and discount points, offering a fuller picture of the real annual cost of borrowing and making it a more useful comparison tool when shopping for a mortgage.
Forecasts suggest little relief before year end
For buyers trying to decide whether to move now or wait, the latest outlooks suggest rates may stay near today’s level for some time. The Mortgage Bankers Association expects the 30-year mortgage rate to average between 6.6% and 6.7% through the rest of 2026.
Fannie Mae’s forecast is slightly higher, with the 30-year rate projected to stay between 6.7% and 6.8% through the end of the year. Those estimates do not guarantee where rates will land on any given day, but they do point to a market that is still elevated by historical standards.
For households planning a purchase or refinance, that outlook puts more weight on loan structure, lender comparison, and personal credit readiness. In a market like this, small differences in pricing can still add up over time.
More on what homes, rents and new builds are doing near you, on RHS Commoner.
