Mortgage rates in the United States have just hit a new 2026 low. The average rate for a 30-year fixed mortgage dropped to 5.76%, driven by declining inflation and expectations that the Federal Reserve will maintain its current stance. For those looking to buy a home or refinance, this could be a pivotal moment.
Today's rates: the numbers
Here are the most relevant rates as of February 24, 2026:
- 30-year fixed mortgage: 5.76% (new yearly low)
- 15-year fixed mortgage: approximately 5.1%
- HELOC (home equity line of credit): 7.23% national average
- Home equity loan: 7.44% average
For context: a year ago rates were near 6.5%, so the decline is significant.
Why are mortgage rates dropping?
Three factors are pushing rates down:
- Cooling inflation: Core CPI is at 2.5%, approaching the Fed's 2% target
- Fed expectations: the market anticipates the Fed will hold or cut rates at the March 17-18 meeting
- Treasury yields: 10-year yields have declined, which pulls mortgage rates lower
Is it a good time to buy a home?
It depends on your situation, but indicators are favorable:
- In favor: rates at yearly lows, housing inventory increasing in many markets, sellers more willing to negotiate
- Against: Trump tariffs could increase construction material costs (steel, lumber), home prices remain elevated in major cities
- Forecast: MBA expects rates to stay near 6% throughout 2026, so no dramatic additional drop is expected
Already have a mortgage? Refinancing could save you thousands
If you have a mortgage with a rate above 6.5%, refinancing at 5.76% can mean considerable savings. On a $300,000 30-year mortgage, the difference between 6.5% and 5.76% is approximately $140 per month — or $1,680 per year.
Where to put your money in the meantime
If you're not buying a home, savings rates are also attractive:
- High-yield savings accounts: up to 4% APY (SoFi, Valley Bank Direct)
- 1-year CDs: up to 4% APY (Marcus by Goldman Sachs)
- Money Market accounts: up to 4.01% APY (best available)
The national average for savings accounts is just 0.39% APY, so if your money sits in a traditional bank, you could be losing hundreds of dollars per year.
What to do now
If you want to buy: get pre-approved now to lock in a rate near 5.76%. Rates could rise if inflation rebounds due to tariffs.
If you want to refinance: calculate whether the monthly savings justify closing costs (typically 2-5% of the loan). If your current rate is above 6.5%, it's probably worth it.
If you want to save: move your money to a high-yield account. There's no reason to earn 0.39% when you can earn 4%.
