According to Zillow’s lender marketplace, the average 30-year fixed-rate mortgage rose 8 basis points to 6.44% today, Friday, July 3, 2026. The 20-year fixed average rose 4 points to 6.26%. The 15-year fixed rate was almost unchanged (down 1 basis point) there 5.86%. The 5/1 ARM rate rose 5 points to 6.46%.
Read more: Mortgage lenders weekly survey: 6% return (excl. fees)
Current housing prices
Here are the current purchase prices, according to the latest Zillow data, for Friday, July 3, 2026:
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30 years fixed: 6.44%
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20 years fixed: 6.26%
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15 years fixed: 5.86%
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5/1 ARM: 6.46%
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7/1 ARM: 6.44%
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VA for 30 years: 5.78%
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15 year VA: 5.51%
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5/1 VA: 5.74%
Remember, these are national averages and rounded to the nearest hundredth.
Current mortgage refinance rates
These are the latest repossession rates, according to the latest Zillow data, for Friday, July 3, 2026:
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30 years fixed: 6.38%
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20 years fixed: 6.41%
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15 years fixed: 5.82%
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5/1 ARM: 6.40%
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7/1 ARM: 6.54%
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VA for 30 years: 5.91%
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15 year VA: 5.51%
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5/1 VA: 5.70%
Also, the numbers given are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than home buying rates, although not always.
Read more: Dive deep into 7 options for repurchasing a home
Free mortgage calculator
Your mortgage rate plays a big role in how much your monthly payment will be. Use this mortgage calculator to see how the loan amount, rate, and term will affect your monthly payments:
You can bookmark Yahoo Finance’s down payment calculator and keep it handy for future use, as you shop for homes and lenders.
How interest rates on mortgages work
The mortgage interest rate is the payment for borrowing money from your lender, expressed as a percentage. You can choose from two types of prices: fixed or adjustable.
A fixed rate mortgage locks in your amount for the life of your loan. For example, if you get a 30-year mortgage with an interest rate of 6%, your rate will remain at 6% for the entire 30 years unless you refinance or sell.
An adjustable rate mortgage locks in your rate for a set period of time and adjusts it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate will be 6% for the first seven years, and then the rate will increase or decrease once a year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and the housing market.
At the beginning of your mortgage term, most of your monthly payment goes towards interest. Your monthly payment towards the security principal and interest remains the same throughout the years. However, less of your payment goes to interest, and more to the loan principal or the original loan amount.
Read more: Decide if an adjustable rate versus a fixed rate mortgage is better for you
What is the duration of the loan you should get?
A 30-year fixed rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher if you choose a shorter term, and you’ll pay more in interest over the years.
You may want to consider a 15-year fixed rate mortgage if you intend to pay off your home loan quickly and save on interest. These shorter terms come with a lower interest rate, and since you’re cutting your repayment period in half, you’ll save more interest in the long run. But you’ll need to be sure you can comfortably afford the monthly payments that come with 15-year terms.
Read more: Learn how to decide between a 15-year and a 30-year fixed rate mortgage
In general, a variable rate loan may be suitable if you plan to sell before the end of the introductory rate period. Adjustable rates usually start below the fixed rates, and your rate will change after a predetermined amount of time. However, the 5/1 and 7/1 ARM rates have been the same as (or higher than) the 30-year fixed rates recently. Before getting an ARM at the lowest rate, compare your rate options from term to term and lender to lender.
Are mortgage rates going down?
Not really. The average 30-year fixed-rate mortgage rose 8 basis points to 6.44% today, Friday, July 3, 2026. The 20-year fixed average rose 4 points to 6.26%. The 15-year fixed rate was almost unchanged (down 1 basis point) there 5.86%. The 5/1 ARM rate rose 5 points to 6.46%.
Mortgage interest rates today: Frequently Asked Questions
What are mortgage interest rates doing today?
According to Freddie Mac, the average 30-year mortgage rate was 6.43% through Wednesday, down from 6.49% last week. Last year, the average 30-year mortgage was 6.67%.
How much will mortgage rates drop in 2026?
According to recent forecasts, MBA expects the 30-year mortgage rate to be between 6.4% and 6.5% by 2026. Fannie Mae is forecasting a 30-year rate of 6.4% by the end of the year.
How low can mortgage rates go in 2027?
Mortgage rates will likely remain relatively unchanged through 2027. The MBA predicts 30-year fixed rates of 6.5% through 2027. However, Fannie Mae is more optimistic, predicting average rates to be between 6.3% and 6.4% in 2027.
