Mortgage Rates Today, Monday, January 5: Slightly Lower

Mortgage interest rates are a little lower today, but the 30-year rate has been circling 6% for weeks.

The average interest rate on a 30-year, fixed-rate mortgage fell to 5.96% APR, according to rates provided to NerdWallet by Zillow. This is 15 basis points lower than yesterday and five basis points lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

Rates have remained relatively stable for the past two weeks. If you’re ready to start 2026 with a new home and can afford today’s rates, now might be the time to start shopping.

Mortgage rates are constantly changing, since a major part of how rates are set depends on reactions to new inflation reports, job numbers, Fed meetings, global news … you name it. For example, even tiny changes in the bond market can shift mortgage pricing.

This week, the Nerds are watching the December jobs report, which comes out on Friday.

The last months of 2025 were plagued by missing and delayed federal economic data, with analysts relying on alternative sourcing and old figures to piece together a rough idea of the nation’s financial situation. Now, we’re kicking off the new year with data flowing in as planned, finally giving economists a real-time employment snapshot.

If the jobs report shows that unemployment went up in December, mortgage rates will likely fall further as a result. If unemployment rates fell, rates could rise a bit. One reason for this is because of the Federal Reserve: central bankers are more likely to cut borrowing rates when unemployment is on the rise, and they may decide to raise borrowing rates (or hold them steady) if falling unemployment leads to a renewed focus on lowering inflation.

In January of last year, President Trump announced plans to increase tariffs on multiple key trade partners, a strategy that had wide-ranging implications for the economy as a whole throughout 2025.

Now, we’re starting 2026 with executive plans for a U.S.-controlled regime change in Venezuela. While the situation is too new to know how this will play out, it serves as a reminder that international relations have always played a role in our financial markets and will continue to do so.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you may want to start considering a refi if your current rate is around 6.46% or higher.

Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term or turn home equity into cash? For example, you might be more comfortable with paying a higher rate for a cash-out refinance than you would for a rate-and-term refinance, so long as the overall costs are lower than if you kept your original mortgage and added a HELOC or home equity loan.

If you’re looking for a lower rate, use NerdWallet’s refinance calculator to estimate savings and understand how long it would take to break even on the costs of refinancing.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

If the answer is yes, don’t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting preapproved, comparing lender offers, and understanding what monthly payment works for your budget.

NerdWallet’s affordability calculator can help you estimate your potential monthly payment. If a new home isn’t in the cards right now, there are still things you can do to strengthen your buyer profile. Take this time to pay down existing debts and build your down payment savings. Not only will this free up more cash flow for a future mortgage payment, it can also get you a better interest rate when you’re ready to buy.

If you already have a quote you’re happy with, you should consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down lets you take advantage of a better rate if the market drops during your lock period.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

The rate you see advertised is a sample rate — usually for a borrower with perfect credit, making a big down payment, and paying for mortgage points. That won’t match every buyer’s circumstances.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.