Thirty-year mortgage rates have fallen to a one-year low, dropping to 5.97% as of February 24, 2026, according to the Mortgage Research Center. This marks a decline from 6.02% the previous week, offering potential relief for homebuyers and refinancers seeking lower borrowing costs.

30-Year Fixed Rates Fall, 15-Year Rates Rise Slightly

The average rate on a 30-year fixed mortgage is now 5.97%, down 0.05 percentage points from the prior week. The annual percentage rate (APR) for such loans is 5.99%, a drop from 6.04% last week. According to the Forbes Advisor mortgage calculator, a $100,000 mortgage would carry a monthly payment of approximately $597 in principal and interest, with total interest paid over the life of the loan reaching about $115,699.

In contrast, the 15-year fixed mortgage rate rose 0.07 percentage points to 5.28%, compared to 5.21% a week ago. The APR for 15-year mortgages is now 5.32%, up from 5.25% last week. A $100,000 mortgage under this rate would result in a monthly payment of $805 in principal and interest, with total interest of approximately $45,380 over the life of the loan.

Jumbo Mortgage Rates Also Drop Slightly

Jumbo mortgage rates, which apply to loans exceeding the 2026 conforming loan limit of $832,750 in most areas, have also seen a decline. The average rate for a 30-year jumbo mortgage fell 0.01 percentage points to 6.49%, compared to 6.50% the previous week. This rate would result in a monthly payment of $631 per $100,000 borrowed, with total interest of approximately $127,710 over the loan term.

Historical Context and Fed Rate Influence

Mortgage rates have largely remained in the mid-to-high 6% range for most of 2025, with the 15-year fixed rate fluctuating between the low-6% and mid-to-high-5% range. After peaking at 6.27% in January 2026, the 15-year rate began to decline following the Federal Reserve’s rate cuts in September, October, and December 2025. The Fed’s policy rate was reduced to a 3.50% to 3.75% target range, and it remained unchanged at that level during its January 28, 2026, meeting.

The central bank will make further decisions on the federal funds rate at upcoming FOMC meetings this year. Any additional rate cuts could lead to further reductions in mortgage rates, while pauses or increases could keep rates stable or cause them to rise again.

Mortgage rates are closely tied to U.S. Treasury bond yields. When bond yields fall, mortgage rates typically follow. The Federal Reserve’s decisions, along with global economic conditions and inflation trends, also play a significant role in shaping mortgage rates.

What’s Next for Mortgage Rates in 2026?

While a significant drop in mortgage rates seems unlikely in the near term, they could decline if inflation eases or the economy weakens. However, the current housing market remains challenging, with limited inventory and high home prices. This combination of high mortgage rates and appreciated home values continues to pose obstacles for many prospective buyers.

Homeowners considering refinancing should compare their current mortgage rates with today’s rates to determine if locking in a lower rate is beneficial. Borrowers should also consider their debt-to-income ratio, credit score, and other factors that influence the rates lenders are willing to offer.

According to the Mortgage Research Center, borrowers are advised to shop around with multiple lenders to find the best rates and terms. Applying with several lenders within a 45-day window can help avoid unnecessary impacts on credit scores.

The Federal Reserve’s upcoming decisions on the federal funds rate will be critical in determining the trajectory of mortgage rates in the months ahead. As the central bank assesses economic data and inflation trends, its actions could have a direct impact on the borrowing costs for homebuyers and refinancers alike.