According to the Zillow lender marketplace, mortgage rates are surging alongside Treasury yields.
The average 30-year fixed rate today, Friday, October 2, 2026, is 7.44%, up 20 basis points since yesterday. The 15-year fixed loan is currently 6.77%, up 7 basis points from yesterday. The 5/1 ARM is 6.97%, up 25 basis points from Thursday.
Current mortgage rates
Here are the current purchase rates, according to the latest Zillow data, for Friday, October 2, 2026:
- 30-year fixed: 7.44%
- 20-year fixed: 7.36%
- 15-year fixed: 6.77%
- 5/1 ARM: 6.97%
- 7/1 ARM: 6.61%
- 30-year VA: 6.97%
- 15-year VA: 6.36%
- 5/1 VA: 6%
Remember, these are national averages and have been rounded to the nearest hundredth.
Current mortgage refinance rates
These are the latest refinance rates, according to the latest Zillow data, for Friday, October 2, 2026:
- 30-year fixed: 7.41%
- 20-year fixed: 7.40%
- 15-year fixed: 6.81%
- 5/1 ARM: 6.25%
- 7/1 ARM: 7.04%
- 30-year VA: 7.03%
- 15-year VA: 6.69%
- 5/1 VA: 6.25%
Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.
Free mortgage calculator
Your mortgage rate plays a large role in how much your monthly payment will be. Use this mortgage calculator to see how your mortgage amount, rate, and term length will impact your monthly payments:
Monthly Mortgage Payment Calculator
You can bookmark the tax assistant mortgage payment calculator and keep it handy for future use, as you shop for homes and the best mortgage lenders.
How mortgage interest rates work
A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.
A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you obtain a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.
An adjustable-rate mortgage locks in your rate for a predetermined period and then adjusts it periodically. Let's say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.
At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years. However, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.
Which mortgage term length should you get?
A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term, and you will pay significantly more in interest over the years.
You may want to consider a 15-year fixed-rate mortgage if you aim to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you're cutting your repayment time in half, you'll save a lot in interest in the long run. But you'll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.
Typically, an adjustable-rate mortgage might be suitable if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, and then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates have been similar to (or even higher than) 30-year fixed rates recently. Before getting an ARM just for a lower rate, compare your rate options from term to term and lender to lender.
Are mortgage rates decreasing?
No, rates are moving appreciably higher compared to yesterday. The average 30-year fixed rate today, Friday, October 2, 2026, is 7.44%, up 20 basis points since yesterday. The 15-year fixed loan is currently 6.77%, up 7 basis points from yesterday. The 5/1 ARM is 6.97%, up 25 basis points from Thursday.
Mortgage rates are closely tied to the yield on 10-Year U.S. Treasury bonds. When Treasury yields rise due to economic factors—such as persistent inflation, strong labor market data, or shifting Federal Reserve policy—lenders increase mortgage interest rates to keep up with market conditions.
Typically, ARMs offer significantly lower initial interest rates than fixed-rate loans. However, in today’s environment, rates on 5/1 and 7/1 ARMs (around 6.61% to 6.97%) are nearly as high as—or even higher than—a standard 30-year fixed loan (7.44%). Unless you plan to sell or pay off the property before the introductory period ends, a fixed-rate loan generally offers better long-term protection against future rate hikes.
Refinance rates often carry slightly higher rates or additional loan-level price adjustments because lenders assess different risk profiles for refinancing versus purchasing a home. However, this varies depending on equity, credit score, and whether you are opting for a rate-and-term refinance or a cash-out refinance.
A 15-year fixed loan offers a lower interest rate (currently 6.77% vs. 7.44% for a 30-year fixed) and cuts your total repayment timeline in half. While your monthly principal and interest payment will be higher, you will save tens or even hundreds of thousands of dollars in total interest over the life of the loan.
National averages provide a general benchmark, but your actual rate depends on your specific financial profile. You can secure a lower rate by:
Shopping around: Compare quotes from multiple local banks, credit unions, and online brokers.
Improving your credit score: Scores above 740 qualify for the best pricing tiers.
Paying mortgage points: Paying upfront fees at closing (discount points) lowers your interest rate for the full term.
Exploring government-backed programs: VA loans (for eligible military members) and FHA loans often offer lower interest rates than conventional loans.
Manoj Sharma is a Senior Writer on the banking team at Tax Assistant. He provides information on budgeting, bank accounts, the banking industry, and other related topics. Using original data and methodologies, he helps you identify the best financial institutions, accounts, and products tailored to your needs. Manoj holds a degree in Journalism and Political Science from Syracuse University. All articles are strictly reviewed and fact-checked by our panel of expert Chartered Accountants, including CA Devendra Saini, CA Nikhil Khunteta, and CA Ankit Goyal
