Mortgage Interest Rates: January 12, 2026
Monitoring mortgage interest rates is essential for homebuyers and homeowners looking to refinance. As we enter 2026, current market conditions provide a favorable environment for those considering their financial futures.
Current Market Overview
The beginning of a new year often prompts individuals to reassess their financial circumstances. January 2026 is no exception, with prospective homebuyers and current homeowners finding renewed opportunities in the mortgage market. Following several years of elevated interest rates, there was a significant cooldown in 2025, with the average mortgage interest rate dropping more than a full percentage point by year’s end. Early indicators suggest this trend may continue into 2026.
While the appeal of waiting for lower rates is tempting, it carries risks. A decrease in rates could lead to missed opportunities for homebuyers and potentially higher costs for current homeowners if they continue to pay elevated interest rates.
Today’s Mortgage Interest Rates
As of January 12, 2026, data from Zillow indicates the following average mortgage interest rates:
- 30-Year Fixed Rate: 5.87%
- 15-Year Fixed Rate: 5.25%
These averages suggest that borrowers with robust credit scores may be able to secure rates lower than these benchmarks by exploring various lenders. However, it is essential to note that mortgage rates fluctuate daily, influenced by factors such as the 10-year Treasury yield and actions by the Federal Reserve.
For those ready to buy or refinance, acting now can be advantageous. Procrastination carries the risk of missing out on favorable conditions. Additionally, some lenders may offer options for floating down the current mortgage rate before closing or refinancing after purchasing a home.
Today’s Mortgage Refinance Rates
The refinancing landscape has also shifted, with current rates as follows:
- 30-Year Refinance Rate: 6.41%
- 15-Year Refinance Rate: 5.43%
These rates open avenues for homeowners seeking to lower their payments through refinancing, even if it requires higher monthly payments for a shorter term. When considering refinancing, it is crucial to assess closing costs thoroughly to determine whether immediate action is beneficial or if waiting for potential rate declines in 2026 is wiser.
Conclusion
As of January 12, 2026, the average mortgage interest rates stand at 5.87% for a 30-year term and 5.25% for a 15-year term. Refinancing options are available at 6.41% for a 30-year term and 5.43% for a 15-year term. For those looking to minimize interest payments, 15-year mortgage terms are a viable option.
Careful calculations regarding repayment costs and closing expenses will help potential buyers and current homeowners make informed decisions about their next steps in this evolving market.