Thursday, Aug 27, 2026 Mortgage Market Update: Fixed Rates Climb, Adjustable-Rate Loan Dips

Mortgage rates moved in different directions on Thursday, August 27, 2026, according to Zillow’s lender data. The 30‑year fixed purchase rate rose four basis points to 6.57%, the 15‑year fixed advanced three basis points to 5.97%, while the 5/1 ARM slipped 21 basis points to 6.35%.

Today’s purchase mortgage rates

The following are today’s purchase mortgage rates for Thursday, August 27, 2026, based on the latest Zillow data:

• 30‑year fixed: 6.57%

• 20‑year fixed: 6.25%

• 15‑year fixed: 5.97%

• 5/1 ARM: 6.35%

• 7/1 ARM: 6.24%

• 30‑year VA: 6.11%

• 15‑year VA: 5.64%

• 5/1 VA: 5.88%

These figures represent national averages and are rounded to the nearest hundredth of a percent.

Eight strategies can help borrowers secure the lowest possible mortgage rate.

Today’s refinance mortgage rates

Today’s refinance mortgage rates for Thursday, August 27, 2026, per the latest Zillow data, are listed below:

• 30‑year fixed: 6.50%

• 20‑year fixed: 6.64%

• 15‑year fixed: 5.93%

• 5/1 ARM: 6.19%

• 7/1 ARM: 6.20%

• 30‑year VA: 5.96%

• 15‑year VA: 5.81%

• 5/1 VA: 5.71%

These are also national averages rounded to the nearest hundredth. Refinance rates can be higher than purchase rates, though this isn’t always true.

Monthly mortgage payment calculator

The calculator below lets you explore how different mortgage rates affect your monthly payments.

Payment breakdown Amortization

Mortgage payment calculator

Mortgage payment breakdown

81% Principal & interest

$2,157
Taxes, insurance, HOA fees

0% Private mortgage insurance

Bookmark the Yahoo Finance mortgage payment calculator for easy access when you shop for homes and lenders. Use the dropdown to factor in private mortgage insurance and HOA fees if applicable. Including these costs along with principal and interest provides a realistic estimate of your monthly payment.

How mortgage rates work

A mortgage interest rate represents the cost a lender charges for borrowing money, expressed as a percentage. Mortgage rates generally fall into two categories: fixed‑rate and adjustable‑rate loans.

A fixed‑rate mortgage keeps the same interest rate for the loan’s full term. For example, a 30‑year loan at 6% will stay at 6% throughout the 30 years, unless you refinance or sell the property.

An adjustable‑rate mortgage (ARM) offers a fixed rate for an initial period, then adjusts periodically. A typical 5/1 ARM, for instance, holds a 6% rate for the first five years, after which the rate can rise or fall annually for the remaining 25 years, influenced by economic conditions and housing market trends.

Early in the loan term, a larger portion of each payment goes toward interest. Over time, the share allocated to interest decreases while the portion applied to principal increases.

How mortgage rates are determined

Mortgage rates are shaped by factors you can influence and others beyond your control.

Controllable factors include shopping for the best lender, as competition can lead to lower rates and fees. Lenders also reward higher credit scores, lower debt‑to‑income ratios, and larger down payments with better rates. Boosting your credit, reducing debt, or increasing your down payment can help you qualify for a lower interest rate.

Uncontrollable factors are largely macroeconomic. When the economy is weak—reflected in high unemployment, for instance—rates tend to fall to spur borrowing and stimulate growth. Conversely, a strong economy often drives rates upward to curb excessive spending.

All else being equal, refinance rates are usually a bit higher than purchase rates, so it’s normal to see a higher rate when you refinance.

30‑year vs. 15‑year fixed mortgage rates

The most common loan terms are 30‑year and 15‑year fixed‑rate mortgages, both of which keep the same interest rate for the life of the loan.

A 30‑year mortgage typically offers lower monthly payments but carries a higher interest rate than a 15‑year term. Over three decades, this results in significantly more interest paid overall.

A 15‑year mortgage generally provides a lower rate, reducing total interest costs and accelerating home equity buildup. However, monthly payments are higher because the loan is repaid in half the time.

In essence, a 30‑year term offers lower monthly affordability, whereas a 15‑year term saves money over the life of the loan.

Current mortgage rates: FAQs

What bank is offering the lowest mortgage rates?

The latest Yahoo Finance lender survey identifies Flagstar, Chase, and Citibank as offering some of the lowest median mortgage rates. Nonetheless, borrowers should compare offers across banks, credit unions, and dedicated mortgage lenders to secure the best terms.

Is 2.75% a good mortgage rate?

A 2.75% rate would be exceptionally favorable—historical lows were recorded around 2020‑2021. Today, securing a sub‑3% rate typically requires an assumable mortgage from a seller who locked in that historically low rate.

What is the lowest‑ever mortgage rate?

The lowest recorded 30‑year fixed rate was 2.65%, posted by Freddie Mac in January 2021. Rates below 3% are unlikely in the near future.

At what rate should you refinance your mortgage?

Financial advisors often suggest refinancing when you can secure a rate at least 1–2 percentage points lower than your current mortgage. The decision also hinges on your financial objectives, expected homeownership duration, and the break‑even point for closing costs.

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