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Mortgage Rates & Home Buying Guide 2026
30-year fixed rates have climbed back to 6.00–6.40% despite the Fed holding at 3.50–3.75%. That $1,997/month payment on a median-priced home is the number to beat — here's how.
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2026 Mortgage Rates at a Glance
6.37%
30-Year Fixed
National average
5.74%
15-Year Fixed
National average
$400,000
Median Home Price
US national
$806,500
Conforming Limit
2026 FHFA
Where Mortgage Rates Stand Now
Mortgage rates spiked roughly 40 basis points in March 2026 alone, erasing the brief dip below 6% that had buyers optimistic. The 30-year fixed now sits around 6.00–6.40% — well above the Fed funds target of 3.50–3.75%. That roughly 270-basis-point spread between short-term policy rates and long-term mortgage rates is historically wide, reflecting inflation expectations and term premium rather than Fed policy alone.
For a borrower putting 20% down on a $400,000 home (a $320,000 loan), the 30-year fixed payment works out to about $1,997/month in principal and interest. A 15-year fixed at 5.40–5.75% costs $2,759/month but saves over $220,000 in total interest. The gap matters: choosing the wrong term or waiting for rates that may not drop is a six-figure decision.
The Fed has cut 175 basis points from its peak, yet mortgage rates have barely budged. Until the 10-year Treasury yield meaningfully declines — unlikely while inflation expectations remain elevated — expect 30-year rates to stay in the 6–7% range through mid-2026.
Mortgage Rate Trends
Weekly average rates. Data as of 2026-04-09. Source: Freddie Mac via FRED.
Types of Mortgage Loans
Conventional (30-Year Fixed)
The most popular mortgage. Fixed rate of 6.00–6.40% for the full 30-year term. Requires as little as 3% down, but PMI applies below 20%. Conforming loan limit is $806,500 for most counties in 2026. Predictable monthly payments make budgeting easy.
Conventional (15-Year Fixed)
Lower rate of 5.40–5.75% and you own your home in half the time. Higher monthly payments than a 30-year, but you pay far less total interest. Best for borrowers who can afford the larger payment and want to build equity quickly.
FHA Loan
Government-backed loan requiring only 3.5% down payment and accepting credit scores as low as 580. Mortgage insurance premium (MIP) is required for the life of the loan. Popular with first-time home buyers who lack a large down payment.
VA Loan
Available to eligible veterans, active-duty service members, and surviving spouses. No down payment required (0%), no PMI, and competitive rates. VA funding fee applies but can be rolled into the loan. One of the best mortgage benefits available.
30-Year Fixed vs 15-Year Fixed vs ARM vs FHA
| Feature | 30-Year Fixed | 15-Year Fixed | 5/1 ARM | FHA |
|---|---|---|---|---|
| Typical Rate | 6.00–6.40% | 5.40–5.75% | Lower initially, then adjusts | Similar to 30-year fixed |
| Min Down Payment | 3% (conventional) | 3% (conventional) | 3–5% (conventional) | 3.5% |
| Monthly Payment | Lowest (longer term) | Higher (~40% more) | Low initially, may increase | Moderate + MIP |
| Total Interest Paid | Highest | Much less (~50% savings) | Depends on rate adjustments | High (30-year term + MIP) |
| PMI Required | Below 20% down (removable) | Below 20% down (removable) | Below 20% down (removable) | MIP for life of loan |
| Best For | Most home buyers | Fast equity builders | Short-term homeowners | First-time buyers, lower credit |
What a $400,000 Home Actually Costs
With 20% down ($80,000), your loan amount is $320,000. Here's how the two most popular fixed-rate terms compare at current rates — principal and interest only, before taxes and insurance.
30-Year Fixed
$1,997/mo
Total interest: $398,920
15-Year Fixed
$2,759/mo
Total interest: $176,620
Based on current average rates. Add ~$200–400/month for property taxes and homeowner's insurance depending on location. PMI adds $100–250/month if your down payment is below 20%. Use our mortgage calculator for your specific numbers.
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Mortgage Analysis
Frequently Asked Questions
What is a good mortgage rate right now?+
As of March 2026, 30-year fixed mortgage rates average 6.00–6.40%, while 15-year fixed rates are at 5.40–5.75%. Rates rose sharply in March despite no change in the Fed funds rate (3.50–3.75%), driven by inflation expectations and term premium. Your actual rate depends on your credit score, down payment, loan type, and lender. Borrowers with excellent credit (740+) and a 20% down payment typically qualify 0.25–0.50% below the average. Shopping three or more lenders can save $10,000+ over the life of the loan.
How much do I need for a down payment?+
The traditional down payment is 20% ($80,000 on a $400,000 home), which avoids private mortgage insurance (PMI). However, many loan programs require less: conventional loans allow as low as 3%, FHA loans require 3.5%, and VA loans for eligible veterans require 0%. A larger down payment means lower monthly payments and less interest paid overall, but it is not always necessary to wait until you have 20%.
What is the difference between a fixed-rate and adjustable-rate mortgage?+
A fixed-rate mortgage locks in your interest rate for the entire loan term (typically 15 or 30 years), so your monthly principal and interest payment never changes. An adjustable-rate mortgage (ARM) starts with a lower introductory rate for a set period (usually 5, 7, or 10 years), then adjusts periodically based on a market index. ARMs carry more risk because your payment can increase when rates rise, but they offer lower initial payments and may make sense if you plan to sell or refinance before the adjustment period begins.
What is PMI and how do I avoid it?+
Private mortgage insurance (PMI) is required on conventional loans when your down payment is less than 20% of the home price. PMI typically costs 0.5%–1.5% of the loan amount annually, added to your monthly payment. You can avoid PMI by making a 20% down payment, choosing a VA loan (no PMI required), or using a piggyback loan. Once your equity reaches 20%, you can request PMI removal from your conventional loan.
Should I choose a 15-year or 30-year mortgage?+
On a $320,000 loan, a 30-year fixed at 6.00–6.40% costs about $1,997/month, while a 15-year fixed at 5.40–5.75% costs $2,759/month — $760 more per month, but you save roughly $220,000 in total interest and own your home in half the time. Choose 30-year if you need lower payments for cash flow flexibility, or 15-year if you can comfortably afford the higher payments and want to build equity fast. A common middle ground: take a 30-year mortgage and make extra payments toward principal when cash flow allows.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice. Mortgage rates shown are national averages and change frequently. Your actual rate will depend on your credit score, down payment, loan type, and lender. Always shop multiple lenders and get pre-approved before making an offer. Consult a qualified mortgage professional for personalized advice.