Will mortgage rates go down in 2026?

Rate forecasts for 2026 suggest modest decreases are possible if inflation continues to moderate and the Federal Reserve cuts rates further. However, rates are unlikely to return to the 3–4% range seen in 2020–2021. Most economists forecast 30-year rates in the 6–7% range through 2026.

How does my credit score affect my mortgage rate?

Credit score has a major impact. A score of 760+ typically gets the best rates. Going from 680 to 760 can save 0.25–0.75% on your rate. On a $350,000 loan, 0.5% difference in rate equals about $100/month or $36,000 over 30 years. Improving your score before applying is one of the best things you can do.

Should I lock my mortgage rate?

Rate locks guarantee your rate for 30–60 days (sometimes longer) while your loan processes. Lock if you believe rates might rise or are satisfied with your quoted rate. Float if you believe rates might decrease and your closing isn't imminent. Most buyers lock because the risk of rates rising outweighs the potential benefit of a small decrease.

Mortgage Rates Today 2026 | Current 30-Year & 15-Year Rates

Q: What are mortgage rates in 2026?

As of mid-2026, the average 30-year fixed mortgage rate is approximately 6.5–7.2% for well-qualified borrowers. 15-year fixed rates average 5.9–6.5%. Rates vary based on credit score, down payment, loan type, lender, and market conditions. Always get multiple quotes — rates can vary by 0.5–1% between lenders.

Current Mortgage Rates (May 2026)

30-Year Fixed

6.75%

National average

15-Year Fixed

6.10%

National average

5/1 ARM

6.20%

Initial rate

Important: These are national averages for well-qualified borrowers (760+ credit score, 20% down). Your actual rate depends on credit score, down payment, loan type, lender, and property type. Always get at least 3 quotes — rates vary significantly by lender.

Mortgage Rates by Loan Type (2026)

Loan Type	Average Rate (May 2026)	Best For
30-year fixed conventional	6.50% – 7.20%	Most buyers — stable payment, lower monthly
15-year fixed conventional	5.90% – 6.50%	Build equity fast, save interest, can afford higher payment
FHA 30-year	6.30% – 7.00%	Lower credit (580+), 3.5% down payment
VA 30-year	6.00% – 6.70%	Veterans and active military — no down payment
USDA 30-year	6.00% – 6.60%	Rural areas — no down payment, income limits
5/1 ARM	6.00% – 6.80%	Short-term ownership, expect to sell/refi in 5 years
Jumbo 30-year	6.80% – 7.50%	Loans over $766,550 (2026 conforming limit)

What Moves Mortgage Rates?

The Federal Reserve and Inflation

Mortgage rates don't directly follow Fed rate decisions, but they're influenced by them. The 30-year fixed rate tracks most closely with the 10-year Treasury yield. When inflation is high, Treasury yields rise and mortgage rates follow. When the Fed signals rate cuts and inflation cools, mortgage rates tend to decrease — but the relationship isn't immediate or one-to-one.

Your Credit Score

Credit score is one of the most powerful factors you control. Here's the impact on a $350,000 30-year loan:

Credit Score	Approx Rate	Monthly Payment	Total Interest
760 – 850	6.50%	$2,213	$446,680
720 – 759	6.75%	$2,270	$467,200
680 – 719	7.00%	$2,329	$488,440
640 – 679	7.50%	$2,447	$531,000
620 – 639	8.00%	$2,568	$574,480

Down Payment

A larger down payment reduces lender risk and typically earns a lower rate. 20%+ down eliminates PMI (private mortgage insurance, $100–$200/month). Going from 5% to 20% down can reduce your rate by 0.25–0.50% and eliminates PMI — a significant savings.

How to Get the Best Mortgage Rate

Shop at least 3–5 lenders — rates vary by 0.25–1.0% between lenders for identical borrowers
Improve credit before applying — pay down revolving debt, fix errors on your credit report
Consider points — paying 1 point (1% of loan) typically reduces rate by 0.25%; calculate break-even time
Get pre-approved, not just pre-qualified — pre-approval rates are more accurate and lock your position
Lock at the right time — once you have a rate you're comfortable with and closing is within 60 days
Compare APR, not just rate — APR includes fees and gives a true cost comparison

Calculate Your Monthly Payment

Enter your home price, down payment, and rate for an instant payment and total cost breakdown.

Use the Free Calculator →

Frequently Asked Questions

What are mortgage rates in 2026?

The average 30-year fixed rate in mid-2026 is approximately 6.50–7.20% for well-qualified borrowers. 15-year fixed rates average 5.90–6.50%. Rates have moderated from 2023–2024 highs but remain well above the historic lows of 2020–2021.

Will mortgage rates drop in 2026?

Most economists expect modest decreases if inflation continues to moderate. Rates are unlikely to return to 3–4% levels. Forecasts suggest 30-year rates could reach 6.0–6.5% by late 2026 if the Fed continues rate cuts, but housing supply constraints keep rates elevated.

How does credit score affect mortgage rate?

Significantly. A 760+ score gets the best available rates. Going from 680 to 760 typically saves 0.25–0.75%. On a $350,000 loan over 30 years, that's $20,000–$60,000 in total interest savings. Improving your credit before applying is one of the highest-ROI moves you can make.

Should I get a fixed or adjustable rate mortgage?

Fixed-rate mortgages are best for buyers who plan to stay 7+ years and want payment certainty. ARMs offer lower initial rates but reset after the fixed period (usually 5 or 7 years) — suitable only if you're confident you'll sell or refinance before the rate adjusts.