Mortgage Rates Dip to Multi-Year Lows: Is Now the Time to Buy or Refinance?
If you’ve been watching the housing market, attractive mortgage rates are here. Today, February 15, 2026, rates are at levels not seen in years, presenting a significant opportunity for both homebuyers and those looking to refinance. The average 30-year fixed mortgage rate currently sits at 5.85%, a substantial decrease from the 6.87% average of the previous year.
Current Mortgage Rate Landscape (February 15, 2026)
Here’s a breakdown of current rates, as reported by Zillow’s lender marketplace:
- 30-year fixed: 5.85%
- 20-year fixed: 5.64%
- 15-year fixed: 5.36%
- 5/1 ARM (Adjustable-Rate Mortgage): 5.81%
- 7/1 ARM: 5.71%
- 30-year VA Loan: 5.36%
- 15-year VA Loan: 5.15%
- 5/1 VA Loan: 4.99%
These rates are hovering around three-year lows, offering potential savings on monthly payments and increased affordability.
What’s Driving the Decline in Mortgage Rates?
The recent decline in mortgage rates, beginning around May 2025, is influenced by several economic factors. The January jobs report showed unemployment at 4.3%, a positive economic indicator. However, this strength has led some analysts to believe the Federal Reserve may hold off on further rate cuts at their March 2026 meeting, suggesting a period of rate stability.
Major housing authorities, including Fannie Mae and the Mortgage Bankers Association (MBA), forecast rates to remain relatively steady throughout 2026, averaging between 6.0% and 6.1%. This supports the idea that current rates represent a valuable opportunity.
The 10-year Treasury yield as well plays a crucial role. A recent dip to 4.065% has contributed to the decline in mortgage rates, creating a favorable environment for borrowers.
How These Rates Impact Homebuyers
Lower interest rates translate to increased affordability and buying power.
- Increased Affordability: Lower rates allow buyers to secure a larger loan amount for the same monthly payment, or maintain the same loan amount with a lower monthly payment.
- More Buying Power: This extra financial flexibility can enable buyers to afford additional features, such as a larger property or a better location.
Refinancing Opportunities
Homeowners with existing mortgages at rates significantly higher than current levels could save substantial money by refinancing.
- Significant Savings: Even a small rate reduction of 0.5% or 1% can result in tens of thousands of dollars saved over the life of the loan.
- Reduced Loan Term: Refinancing into a shorter loan term can accelerate payoff and further reduce interest costs.
Special Considerations for Veterans
VA loans continue to offer exceptional value, particularly for veterans.
- Unbeatable Rates: The 5/1 VA ARM at 4.99% is exceptionally low.
- No Down Payment: VA loans often require no down payment, making homeownership more accessible.
Pro Tip: Obtain pre-approved for a mortgage before starting your home search. This will give you a clear understanding of your budget and strengthen your offer when you find the right property.
The Broader Housing Market Outlook for 2026
Zillow economists predict the housing market will warm up in 2026, with a projected 4.3% increase in existing home sales, reaching 4.26 million. Home values are forecast to rise 1.2% nationally, with fewer markets experiencing price declines (falling from 24 to 12). Rent affordability is also expected to improve, with multifamily rents forecast to increase by only 0.3%.
Did you recognize? While national home values are expected to rise, some markets, like Dallas, Houston, Washington, D.C., San Francisco, and Minneapolis, may still observe price declines.
Investment Opportunities in a Changing Market
Despite higher mortgage rates, rental properties continue to offer strong cash flow and appreciation potential. Turnkey real estate investments, in particular, are gaining traction as a path to passive income and long-term wealth.
Consider these two investment properties:
Cibolo, TX
🏠 Property: Columbia Dr
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1758 sqft
💰 Price: $245,000 | Rent: $1,795
📊 Cap Rate: 5.2% | NOI: $1,052
📅 Year Built: 2007
📐 Price/Sq Ft: $140
🏙️ Neighborhood: A
Akron, OH
🏠 Property: Whitney Ave
🛏️ Beds/Baths: 3 Bed • 1.5 Bath • 1056 sqft
💰 Price: $135,000 | Rent: $1,225
📊 Cap Rate: 9.4% | NOI: $1,063
📅 Year Built: 1923
📐 Price/Sq Ft: $128
🏙️ Neighborhood: C+
Texas offers a stable A-rated rental, while Ohio presents an affordable property with a higher cap rate. The best choice depends on your investment strategy.
Frequently Asked Questions (FAQ)
- What is a good mortgage rate right now? A good rate depends on your credit score and loan type, but anything below 6% is considered favorable in the current market.
- Should I lock in a rate now? If you find a rate you’re comfortable with, locking it in can protect you from potential increases.
- What is the difference between a fixed-rate and an adjustable-rate mortgage? A fixed-rate mortgage has a consistent interest rate throughout the loan term, while an adjustable-rate mortgage (ARM) can change over time.
- How does my credit score affect my mortgage rate? A higher credit score typically qualifies you for lower interest rates.
Ready to explore your options? Contact our investment counselor today for a no-obligation consultation: (800) 611-3060. View All Properties
