The average 30-year fixed mortgage rate has fallen to 5.89% — the lowest level since September 2022 — as the Federal Reserve signals further rate cuts ahead. The housing market is responding.
Current Rates (April 8, 2026)
- 30-year fixed: 5.89% (down from 6.45% in January)
- 15-year fixed: 5.12%
- 5/1 ARM: 5.35%
- FHA 30-year: 5.55%
- VA 30-year: 5.40%
What's Driving the Drop
The Fed has cut rates twice in 2026, with markets pricing in two more cuts. Inflation has cooled to 2.3%, approaching the Fed's 2% target. The 10-year Treasury yield has fallen accordingly.
Should You Lock?
Most economists expect rates to settle between 5.25-5.75% by year-end. If you're buying, locking now is reasonable — don't gamble on perfection. If refinancing, the break-even point makes sense for anyone with a rate above 7%.
