Mortgage Rates Slip as Fed Chair Warsh Prepares Jackson Hole Address

Mortgage rates are trending downward ahead of Federal Reserve Chair Kevin Warsh’s inaugural formal address at the Jackson Hole summit, according to the Zillow lender marketplace.

The average 30-year fixed rate for Friday, August 28, 2026, stands at 6.54%, reflecting a 3 basis point decrease from yesterday. The 15-year fixed loan currently sits at 5.86%, down 11 basis points from the previous day. The 5/1 ARM is available at 6.31%, 4 basis points lower than Thursday’s rate.

Current mortgage rates

The following purchase rates are based on the latest Zillow data for Friday, August 28, 2026:

• 30-year fixed: 6.54%

• 20-year fixed: 6.36%

• 15-year fixed: 5.86%

• 5/1 ARM: 6.31%

• 7/1 ARM: 6.25%

• 30-year VA: 6.11%

• 15-year VA: 5.64%

• 5/1 VA: 5.88%

These figures represent national averages, rounded to the nearest hundredth.

Current mortgage refinance rates

The following refinance rates are based on the latest Zillow data for Friday, August 28, 2026:

• 30-year fixed: 6.54%

• 20-year fixed: 6.36%

• 15-year fixed: 5.97%

• 5/1 ARM: 6.21%

• 7/1 ARM: 6.29%

• 30-year VA: 6.04%

• 15-year VA: 5.69%

• 5/1 VA: 5.74%

These are national averages rounded to the nearest hundredth. It’s worth noting that refinance rates typically run higher than purchase rates, though this isn’t always the case.

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Your mortgage rate significantly impacts your monthly payment amount. This mortgage calculator helps you understand how your loan amount, interest rate, and term length affect your monthly obligations.

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How mortgage interest rates work

A mortgage interest rate represents the cost of borrowing funds from your lender, expressed as a percentage. Borrowers can select between two primary rate structures: fixed or adjustable.

A fixed-rate mortgage secures your rate for the entire loan duration. For instance, if you secure a 30-year mortgage at 6% interest, that rate remains unchanged throughout the 30-year term unless you refinance or sell the property.

An adjustable-rate mortgage locks in your rate for an initial period before adjusting periodically. With a 7/1 ARM featuring a 6% introductory rate, your rate would stay at 6% for the first seven years, then adjust annually for the remaining 23 years. Rate changes depend on various economic and housing market factors.

At the start of your mortgage term, the majority of your monthly payment goes toward interest. While your total monthly payment toward principal and interest remains constant, the proportion allocated to interest decreases over time as more funds go toward reducing the principal balance.

Which mortgage term length should you get?

A 30-year fixed-rate mortgage suits those prioritizing lower monthly payments and rate stability. However, be aware that longer terms come with higher interest rates, resulting in substantially more interest paid over the life of the loan.

Consider a 15-year fixed-rate mortgage if your goal is to pay off your home loan faster and minimize interest expenses. Shorter terms offer lower interest rates, and halving the repayment period yields significant long-term interest savings. Ensure you can comfortably manage the higher monthly payments associated with 15-year terms.

Adjustable-rate mortgages may be appropriate if you anticipate selling before the introductory rate period expires. These products typically begin with lower rates compared to fixed options before adjusting after a predetermined timeframe. However, 5/1 and 7/1 ARM rates have recently been comparable to or exceeding 30-year fixed rates. Carefully compare rate options across different terms and lenders before selecting an ARM solely based on initial rate.

Are mortgage rates decreasing?

Yes, rates are declining. The average 30-year fixed rate for Friday, August 28, 2026, is 6.54%, down 3 basis points from yesterday. The 15-year fixed loan currently stands at 5.86%, 11 basis points lower than yesterday. The 5/1 ARM is at 6.31%, 4 basis points below Thursday’s level.

Mortgage interest rates today: FAQs

What are mortgage interest rates doing today?

According to Freddie Mac, the average 30-year mortgage rate was 6.66% through Wednesday, an increase from 6.65% the prior week. One year ago, the average 30-year mortgage rate stood at 6.56%.

How low will mortgage rates go in 2026?

Industry forecasts indicate the MBA projects the 30-year mortgage rate to average between 6.6% and 6.7% through the remainder of 2026. Fannie Mae forecasts a 30-year rate between 6.7% and 6.8% for the same period.

How low could mortgage rates go by 2027?

Mortgage rates are expected to remain relatively stable through 2027. The MBA forecasts 30-year fixed rates at 6.7% for the entirety of 2027. Fannie Mae projects average rates between 6.7% and 6.8% throughout the year.

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