Monitoring the mortgage interest rate climate is crucial for both buyers and owners hoping to refinance.
saifulasmee chede/Getty Images
The start of a new month is often a smart time to reconsider your financial situation but the start of a new year is an even better time to take action. And, this January, the timing favors homebuyers and owners looking to refinance once again. After years of sustained, elevated mortgage interest rates, the market cooled significantly in 2025. The average mortgage interest rate ended the year more than a full percentage point lower than it was at the start. And there are encouraging signs that this cooling may continue into 2026.
That said, waiting for mortgage interest rates to drop is always a risky proposition. Further drops could complicate the homebuying process, result in you missing out on your dream home, and, if you're already an owner, mean continuing to pay a higher interest rate while a lower one is already available. To better determine the value of taking action now, it helps to know where rates actually stand as of January 12, 2026. Below, we'll detail everything you need to know to make an informed decision.
See how low your current mortgage rate offers are here now.
What are today's mortgage interest rates?
The average mortgage interest rate on a 30-year term is 5.87%, as of January 12, 2026, according to Zillow. The average rate on a 15-year term is currently 5.25%. This means that borrowers with good credit scores can likely now find a rate comfortably under 6%, and may potentially even find a rate that's lower than these averages if they take the time to shop around to find competitive offers and lenders.
Still, mortgage interest rates change daily based on a variety of factors, from the 10-year Treasury yield to the Federal Reserve's actions (or lack thereof) and more. So if these rates are close to what you need to buy a home or already comfortably fit into your budget as is, consider making a move now. There's no guarantee that they will fall considerably in the future, and if they do, you may be able to float down your current mortgage rate before closing (or refinance after you've purchased the home).
Learn more about your current mortgage rate options online today.
What are today's mortgage refinance rates?
The median mortgage refinance rate on a 30-year term is 6.41%, as of January 12, 2026, according to Zillow. The average refi rate for a 15-year term, meanwhile, is just 5.43%, opening up new windows of opportunity for homeowners who don't mind bigger monthly payments in exchange for a lower rate and an expedited payoff timeline.
That said, it's important to view the whole picture when refinancing, and closing costs are an important part of that picture. Consider what those will be, too, to best determine the efficacy of acting now versus waiting for rates to decline later in 2026.
The bottom line
The average mortgage interest rate on a 30-year purchase term is 5.87% as of January 12, 2026, and it's just 5.25% for a 15-year term. The average refinance rate on a 30-year term is now 6.41% and 5.43% for a 15-year option. In other words, if you're looking to pay as little interest as possible right now, whether you're a buyer or owner, 15-year mortgage terms offer you a credible way to do just that. Just be sure to crunch the repayment costs with precision to make sure that these rates and payments fit your budget, and don't forget to account for the associated closing costs with either to best determine your next move.
Edited by Angelica Leicht
