Mortgage Rates Dip Slightly While 5/1 ARM Surges on August 20, 2026

According to Zillow’s lender marketplace, mortgage rates show mixed movement on Thursday, August 20, 2026, with a notable increase for the 5/1 ARM.

The 30-year fixed-rate average sits at 6.52%, down three basis points from yesterday, while the 15-year fixed rate is 5.92%, up five basis points. The 5/1 ARM rises to 6.54%, marking a 23-basis-point increase from Wednesday.

Today’s mortgage rates

Here are the current mortgage rates based on the latest Zillow data for Thursday, August 20, 2026:

• 30-year fixed: 6.52%

• 20-year fixed: 6.29%

• 15-year fixed: 5.92%

• 5/1 ARM: 6.54%

• 7/1 ARM: 6.34%

• 30-year VA: 6.06%

• 15-year VA: 5.54%

• 5/1 VA: 5.71%

These figures represent national averages rounded to the nearest hundredth.

Today’s mortgage refinance rates

These are the current mortgage refinance rates from the latest Zillow data for Thursday, August 20, 2026:

• 30-year fixed: 6.59%

• 20-year fixed: 6.42%

• 15-year fixed: 5.99%

• 5/1 ARM: 6.52%

• 7/1 ARM: 6.43%

• 30-year VA: 6.11%

• 15-year VA: 5.90%

• 5/1 VA: 5.74%

Like purchase mortgage rates, these are national averages rounded to the nearest hundredth. Refinance rates may exceed purchase rates, though this is not always true.

Monthly mortgage payment calculator

Use the mortgage calculator below to see how different mortgage rates affect your monthly payment.

Payment breakdown Amortization

Mortgage payment calculator

Mortgage payment breakdown

81% Principal & interest

$2,143
Taxes, insurance, HOA fees

0% Private mortgage insurance

You can bookmark the Yahoo Finance mortgage payment calculator for future reference while shopping for homes and lenders. Remember to use the dropdown to add private mortgage insurance and HOA fees, if applicable. These costs, combined with your mortgage principal and interest rate, provide a realistic estimate of your monthly payment.

How do mortgage rates work?

A mortgage interest rate represents the fee a lender charges for borrowing money, expressed as a percentage. The two primary types are fixed-rate and adjustable-rate mortgages.

With a fixed-rate mortgage, the interest rate stays constant for the life of the loan. For instance, a 30-year loan at 6% keeps that rate for all 30 years, unless you refinance or sell the property.

An adjustable-rate mortgage holds the initial rate steady for a set period before adjusting periodically. For example, a 5/1 ARM starting at 6% maintains that rate for the first five years, then resets annually over the remaining 25 years. Subsequent changes depend on factors like the broader economy and U.S. housing market conditions.

Early in the loan term, a larger share of each payment covers interest. Over time, the interest portion declines while more of the payment reduces the principal balance.

How are mortgage rates determined?

Mortgage rates are shaped by two groups of factors: those within your control and those beyond it.

Controllable factors include shopping around for lenders that offer the lowest rates and fees.

Lenders also reward borrowers with stronger credit scores, lower debt‑to‑income ratios, and larger down payments. Improving your credit, reducing debt, or increasing your down payment before applying can help secure a better rate.

Uncontrollable factors are primarily driven by the broader economy.

The economy influences rates in many ways. When employment and other indicators weaken, rates tend to fall to stimulate borrowing and economic activity. Conversely, a strong economy usually pushes rates higher to keep spending in check.

All else being equal, refinance rates are generally a bit higher than purchase mortgage rates, so it’s not unusual to see a refinance rate above what you expected.

30-year vs. 15-year fixed mortgage rates

The 30‑year and 15‑year fixed‑rate mortgages are the two most popular loan terms, both locking in the interest rate for the life of the loan.

The 30‑year option appeals to many borrowers due to its lower monthly payments, although it carries a higher interest rate than shorter loans and results in greater total interest paid over three decades.

A 15‑year mortgage offers a lower interest rate than longer‑term loans, reducing total interest costs and allowing faster payoff. However, the monthly payment is higher because the principal is repaid in half the time.

In short, 30‑year loans are easier on the monthly budget, whereas 15‑year loans save money over the life of the loan.

Current mortgage rates: FAQs

What bank is offering the lowest mortgage rates?

According to Yahoo Finance’s weekly lender survey, Chase and Citibank often show some of the lowest median mortgage rates. Still, it’s wise to compare offers across banks, credit unions, and specialist mortgage lenders to secure the best deal.

Is 2.75% a good mortgage rate?

A 2.75% rate is exceptional by today’s standards. You would typically only encounter such a low rate by assuming an existing mortgage from a seller who locked it in during the 2020‑2021 period when rates hit historic lows.

What is the lowest-ever mortgage rate?

Freddie Mac records the lowest-ever 30‑year fixed rate at 2.65%, which was the national average in January 2021. It is highly improbable that rates will fall below 3% again in the near future.

At what rate should you refinance your mortgage?

Some experts recommend refinancing when you can secure a rate at least 2% lower than your current loan, while others consider a 1% reduction sufficient. The decision ultimately hinges on your financial objectives, how long you intend to remain in the home, and the break‑even point after accounting for refinance closing costs.

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