After two years of elevated rates, mortgage rates have finally dipped below 6% for well-qualified borrowers in early 2026. The average 30-year fixed rate sits at 5.87% as of February 2026, with the best lenders offering rates as low as 5.75% for borrowers with excellent credit and substantial down payments.
This represents a significant improvement from the 7.5%+ rates we saw in late 2023 and early 2024, creating a window of opportunity for both homebuyers and those looking to refinance.
Current Mortgage Rate Landscape
The Federal Reserve’s gradual rate cuts throughout 2025 have filtered through to the mortgage market, though not as dramatically as many hoped. Here’s where rates stand in February 2026 across different loan types.
30-year fixed-rate mortgages average 5.87% nationally, down from 6.9% a year ago. 15-year fixed rates average 5.15%, making them attractive for those who can afford higher monthly payments. Adjustable-rate mortgages (ARMs) offer initial rates around 5.25% for 5/1 ARMs, though they carry the risk of future rate increases.
FHA loans average 5.62%, while VA loans for eligible veterans and service members offer the most competitive rates at 5.45% with zero down payment required.
Best Mortgage Lenders by Category
Rocket Mortgage — Best Online Experience
Rocket Mortgage dominates the online lending space with their streamlined digital application process. Most borrowers receive a conditional approval within minutes. Their current 30-year fixed rates start at 5.85% with 0.5 points. The fully digital process means you can close on a home without visiting a physical office.
United Wholesale Mortgage — Lowest Rates
Working through mortgage brokers, UWM consistently offers some of the lowest rates in the market. Their wholesale model eliminates retail markups, with 30-year fixed rates available from 5.75% for well-qualified borrowers. The catch is you must work with an independent mortgage broker rather than applying directly.
Veterans United — Best for VA Loans
For eligible veterans and active military, Veterans United specializes in VA loans with rates starting at 5.45%. Their VA loan expertise means they understand the unique requirements and can navigate the process efficiently. No down payment or private mortgage insurance required.
Chase — Best for First-Time Buyers
Chase’s DreaMaker mortgage program offers 3% down payment options with competitive rates and reduced mortgage insurance for low-to-moderate income borrowers. Their $5,000 homebuyer grant in eligible areas further reduces upfront costs.
How to Get the Lowest Possible Rate
Your credit score is the single biggest factor in your mortgage rate. Borrowers with 760+ FICO scores receive the best available rates, while those below 680 face rates 0.5-1.5% higher. Before applying, pay down credit card balances below 30% utilization and resolve any errors on your credit reports.
The down payment amount also affects your rate. Putting 20% or more down eliminates PMI and often qualifies you for the lender’s best rate tier. Even increasing from 10% to 15% down can shave 0.125% off your rate.
Shopping multiple lenders is critical. Rate differences of 0.25-0.50% between lenders are common for identical borrower profiles. On a $400,000 mortgage, 0.25% translates to roughly $60 per month or $21,600 over the life of the loan. Get quotes from at least 3-5 lenders within a 14-day window to minimize credit score impact from multiple inquiries.
Consider buying mortgage points if you plan to stay in the home long-term. One point costs 1% of the loan amount and typically reduces your rate by 0.25%. On a $400,000 loan, one point costs $4,000 and saves approximately $60 per month. You’d break even in 67 months, making points worthwhile if you’ll keep the mortgage for 6+ years.
Should You Lock Your Rate Now?
Given that mortgage rates have been declining and may continue to drop modestly through 2026, the decision to lock depends on your timeline. If you’re closing within 30-60 days, locking makes sense to protect against any upward rate movements. Most lenders offer free rate locks for 30-60 days.
If you’re still house shopping and won’t close for 90+ days, a float-down option may be worth the small premium. This allows you to lock now but drop to a lower rate if rates decrease before closing.
The consensus forecast suggests 30-year rates could reach the 5.5% range by late 2026, but forecasts have been unreliable in recent years. Don’t delay a home purchase waiting for the perfect rate — the right time to buy is when you find the right home and can afford the payments.