WASHINGTON, DC — Mortgage rates moved higher again on Saturday, extending a two-day climb in the national averages tracked by Zillow’s lender marketplace. The 30-year fixed rate rose to 6.91%, up 8 basis points from the previous day.
The 15-year fixed average climbed more sharply, increasing 14 basis points to 6.37%. The 5/1 adjustable-rate mortgage also edged up, rising 1 basis point to 6.85%.
Zillow’s figures are daily national averages, rounded to the nearest hundredth, so the numbers can differ from what individual borrowers see when they shop with lenders. Even so, the latest move adds another reminder that borrowing costs remain elevated compared with the low-rate era many homeowners still remember.
Zillow’s Purchase Rates Show Broad Increases Across Common Loan Types
The latest purchase-rate snapshot shows higher costs across most of the commonly watched mortgage products. Along with the 30-year fixed at 6.91% and the 15-year fixed at 6.37%, Zillow listed the 20-year fixed at 6.79% and the 7/1 ARM at 6.60%.
VA borrowers also saw averages in the mid-5% to mid-6% range. Zillow put the 30-year VA at 6.26%, the 15-year VA at 5.84%, and the 5/1 VA at 5.89%.
Those figures reflect national averages, not personalized quotes. Loan type, lender, location, credit profile, and down payment can all move a borrower’s final rate in either direction.
Refinance Averages Track Close to Purchase Rates With Some Small Differences
Zillow’s refinance table showed rates that were close to purchase averages in some categories and lower in others. The 30-year fixed refinance rate also stood at 6.91%, while the 15-year fixed refinance average was 6.29%.
For shorter adjustable terms, the refinance figures varied a bit more. Zillow listed the 5/1 ARM refinance rate at 6.05% and the 7/1 ARM at 6.63%.
Refinance rates are often higher than the rates available when buying, though that is not always the case. Borrowers considering a refinance are usually comparing the size of the monthly payment with the long-term cost of replacing an existing loan.
Why a 30-Year Fixed Loan Still Draws Buyers Despite Higher Interest Costs
The 30-year fixed mortgage remains popular because it offers predictable payments and lower monthly bills than shorter terms. Spreading repayment over three decades reduces the monthly burden, even when the interest rate is higher.
The tradeoff is the total cost. A longer term usually means paying more interest over the life of the loan, especially when the rate itself is elevated.
That is why buyers often weigh stability against long-run expense. For households focused on keeping payments manageable, the 30-year fixed can still be the easier fit, even if it is not the cheapest loan in the long run.
Shorter Fixed Terms Can Cut Interest but Raise the Monthly Bill
The 15-year fixed loan works in the opposite direction. It typically comes with a lower interest rate than a 30-year mortgage, and it can save borrowers a large amount in interest over time.
Because the balance is paid off in half the time, the monthly payment is higher. That makes the loan harder to fit into some budgets, even though the overall cost can be lower.
Zillow’s latest averages reflected that pattern. The 15-year purchase rate at 6.37% and the 15-year refinance rate at 6.29% both sat below the 30-year figures, but borrowers would still need to handle a larger monthly payment to benefit from the shorter term.
Adjustable-Rate Mortgages Offer an Introductory Window Before Reset Risk
Adjustable-rate mortgages can start lower than fixed loans, but they carry a later reset risk that makes the payment less predictable. In a 5/1 ARM, the rate stays fixed for five years and then can change once a year for the remaining 25 years.
That structure can help people who expect to move before the fixed period ends. It can also make sense for buyers who are trying to keep their early payments down.
The downside is uncertainty. Once the introductory window closes, the monthly bill can rise or fall with the market, which is why lenders usually tell borrowers to compare the initial savings with the chance of paying more later.
Forecasts Still Put 30-Year Rates in the Mid-6% Range Through 2026
Even with this week’s increase, the longer-term outlook does not call for a dramatic move higher. The Mortgage Bankers Association expects the 30-year mortgage rate to run between 6.6% and 6.7% through 2026.
Fannie Mae’s forecast is slightly higher, with the 30-year rate projected to land between 6.7% and 6.8% through the end of the year. Those forecasts suggest that borrowers should not count on a sharp drop anytime soon.
The practical advice in that environment is simple: compare multiple lenders, check how much a lower rate would change the monthly payment, and decide based on personal timing rather than trying to guess the market’s exact bottom.
More on what homes, rents and new builds are doing near you, on RHS Commoner.
