Mortgage rates have dipped below 6% as of February 7, 2026, with the average 30-year fixed rate at 5.95%, according to Zillow. Refinance rates are slightly higher, averaging 6.07% for 30-year terms. Government-backed loans like VA mortgages offer the steepest discounts, with 5.48% for 30-year terms and 4.90% for 5/1 VA refinances. These shifts follow a prolonged decline from 2025 peaks, signaling potential relief for homebuyers and refinancers.

The 30-year fixed remains the most popular choice, balancing affordability and predictability. Shorter terms like 15-year fixed (5.43%) and adjustable-rate mortgages (ARMs) show mixed advantages. While 15-year loans offer lower rates and faster payoff, their higher monthly payments deter some borrowers. ARMs, though riskier, still attract those planning short-term ownership due to initial rate caps.

VA loan holders benefit most, with 5.11% refinance rates and 4.94% for 5/1 terms. These rates reflect ongoing demand for low-cost financing among veterans. The Zillow data highlights regional variations, urging shoppers to compare lenders. Despite gradual declines, experts project rates to stay near 6% through 2026, limiting dramatic shifts but maintaining a favorable environment for strategic buyers.

Refinancing remains viable for those with improved credit or equity. Lower rates could reduce monthly payments or shorten loan terms. However, locking in rates requires careful timing, as market volatility persists. For first-time buyers, the 5.95% fixed rate offers stability amid uncertain economic forecasts. The trend underscores the importance of rate monitoring and lender comparisons in today’s dynamic market.