Three Mortgage Rates Now Averaging Below 6%

Mortgage interest rates are declining, offering new options for home buyers and refinancers. Several key loan types now have average rates under 6%, a significant threshold. The popular 30-year fixed-rate mortgage currently averages near 5.99%. This option provides long-term payment stability, as the interest rate remains unchanged for the entire loan period. For those seeking lower initial payments, the 5/1 adjustable-rate mortgage (ARM) is averaging approximately 5.87%. An ARM's rate is fixed for the first five years, then adjusts annually based on market conditions. The 15-year fixed-rate mortgage averages about 5.45%. This shorter term typically has a lower rate than a 30-year loan and allows borrowers to build equity faster, though monthly payments are higher. These averages, based on recent national surveys, signal a shift from recent peaks. Prospective borrowers should compare these options based on their financial plans.