Mortgage Rate Today: Why Trump's Proposals Are Changing the Market

Current Market Situation

Good news for homebuyers: mortgage rates are now below 6%. According to Zillow, a 30-year fixed-rate mortgage is at 5.91%, while the 15-year option reaches 5.36%. What’s behind this movement? President Trump has launched two interesting moves: banning institutional investors from purchasing single-family homes and ensuring Fannie Mae and Freddie Mac increase their purchases of mortgage-backed securities. Result? Rates are falling.

Current Rates: What You Need to Know

If you’re considering a mortgage, here’s where we stand today according to Zillow data:

Traditional Mortgages:

• 30-year fixed: 5.91%
• 20-year fixed: 5.83%
• 15-year fixed: 5.36%

Adjustable-Rate Mortgages (ARM):

• 5/1 ARM: 6.17%
• 7/1 ARM: 6.36%

VA Loans (VA):

• VA 30-year: 5.57%
• VA 15-year: 5.21%
• VA 5/1: 5.36%

Note: These are national average values. Your specific rate will depend on state, credit score, down payment, and lender.

Refinancing: How the Landscape Changes

If you’re thinking about refinancing an existing loan, refinancing rates tend to be slightly higher:

• 30-year fixed: 5.99%
• 20-year fixed: 5.75%
• 15-year fixed: 5.43%
• 5/1 ARM: 6.39%
• 7/1 ARM: 6.49%
• VA 30-year: 5.46%
• VA 15-year: 5.13%
• VA 5/1: 5.44%

30-Year Fixed vs. 15-Year Fixed: Which to Choose?

The 30-Year Fixed Mortgage: Two main advantages: lower monthly payments and predictable amounts each month. The loan is spread over double the period, so the payment is reduced. One certainty: the rate remains unchanged for the entire term—unless property taxes change. The downside? You’ll pay much more total interest since the rate is higher and the repayment period is longer.

The 15-Year Fixed Mortgage: Essentially the opposite. Higher monthly payments, but lower interest rates, and the house will be paid off in half the time, saving significantly on interest. The question is: can you afford the larger payment?

ARM: The Compromise with Risks

Adjustable-rate mortgages (ARM) start with a fixed rate for an initial period—for example, a 5/1 ARM maintains the same rate for five years, then adjusts annually. The advantage? The introductory rate is generally lower than the 30-year fixed, with lower initial payments. The risk? When the fixed period ends, the rate could increase, leading to unpredictable payments. If you plan to sell or refinance before adjustments, an ARM might be advantageous.

Is Now the Right Time to Buy?

Compared to the pandemic years, yes, it could be a good time. Home prices are not rising as rapidly— the market is more stable. If you have a short-term move planned, current conditions are relatively favorable. That said, the best time to buy is when it works for your personal circumstances, not when the calendar says so.

Common Questions About Today’s Mortgage Rates

Will mortgage rates continue to fall today? Probably not significantly. The Mortgage Bankers Association predicts the 30-year rate will stay around 6.4% until 2026. Fannie Mae estimates rates will stay above 6% until next year, possibly dropping to 5.9% in Q4 2026.

How can I get the best refinancing rate? Follow the classic steps: improve your credit score, reduce your debt-to-income ratio (DTI), and compare offers from different lenders. A shorter term can also help you get a better rate, even if monthly payments increase.

What are recent trends? Since late May, rates have been gradually decreasing. The 30-year fixed surpassed 7% in January, fluctuated for months, then started a slow decline from 6.89% at the end of May.