While homebuying, mortgage interest rates and refinancing may not be at the top of mind for buyers and owners now, in the final days of 2025, they may be worth reconsidering. After years of being plagued by elevated mortgage interest rates that pushed many buyers and owners to the sidelines, there has been some real, tangible improvement in the space this year. And there could be more to come in 2026.The average mortgage interest rate is down by around a full percentage point from where it started in January, and mortgage refinance rates may already be low enough to justify making a move for current owners. And if both groups have been waiting to find a rate in the 5% range, they may not have to wait much longer. In fact, there are now multiple viable ways in which one can secure a mortgage rate in the 5% range for 2026. This will not only save interest costs and help reduce monthly payments, but it can expedite the payoff timeline, too.So, how can you actually get a mortgage rate in the 5% range for the new year? Below, we’ll break down three ways to know now.Start by seeing how low your current mortgage rate offers are here.How to get a mortgage rate in the 5% range for 2026Here are three effective and timely ways to secure a mortgage rate in the 5% range right now:Shop around onlineIt’s arguably never been easier to shop around for mortgage interest rates with multiple online marketplaces listing numerous lenders, rates and terms, all in one easy-to-navigate location. Consider using these sites, then, to find a rate under 6%. The average mortgage interest rate on a 30-year term is currently 5.99%, according to Zillow. But that’s the average, meaning that if you spend some time comparison shopping, you may be able to find one even lower right now. It will take some time and effort on behalf of the borrower, and it may require you to revisit select lenders to see if they can beat better offers found elsewhere, but if the end result is an average mortgage interest rate comfortably in the 5% range, it will be time well spent.Start comparison shopping for mortgage rates and lenders online now.Reconsider your refinancing optionsDid you buy a home in recent years and get stuck with a mortgage rate over 7% as a result? Now you have options worth reconsidering. The average mortgage refinance rate on a 15-year term, for example, is currently just 5.68%, according to Zillow. And, again, that’s the average meaning that qualified borrowers may be able to find one even lower by shopping around. While a 15-year term may result in higher monthly mortgage repayments thanks to the expedited payoff timeline, it can be worth exploring for many, thanks to the interest savings and the quicker path to becoming debt-free. The math may not work for everyone, but it’s worth crunching the numbers to see if this rate and term now work for you.Boost your down paymentWith mortgage purchase rates already available in the high 5% range, you may be able to secure one that’s a bit lower by boosting your down payment. While most lenders will require a minimum 20% down payment (or make the homeowner pay for private mortgage insurance), a down payment significantly above that threshold could compel the lender to offer you a more competitive rate. The more you’re willing to put down up front, the less risk the lender is taking in providing the balance of the loan. And that lower risk can often be reflected in the form of lower mortgage rates, potentially in the 5% range, for homebuyers.The bottom lineMortgage interest rates are not nearly as affordable as they were at this point in 2020 or 2021, but they’re also much less expensive than they were in December 2024 or December 2023, too. And with realistic, viable ways to lock in a mortgage rate in the 5% range again, homebuyers and owners hoping to refinance may now feel comfortable reconsidering their options. 2026 is unlikely to bring back the sub-4% mortgage rates from the start of the decade, but if rates in the 5% range fit your budget and homeownership goals now, then it may be time to start rate shopping again.
