After the record lows that mortgage interest rates hovered near for most of 2020 and 2021, even a casual observer could tell you what a “good” rate could be considered to be at the time. A rate under 4% was generally considered good during this period but there were plentiful options under 3%, too, giving both homebuyers and owners reason to take action. But the economic climate and interest rate landscape, specifically, have changed dramatically since that point.Inflation surged in 2022 and interest rates rose alongside it. As it started to decline in 2023 and 2024, however, rate cuts were again issued. The Federal Reserve cut rates three times in the final four months of 2024 and repeated that pattern in the final four months of 2025. And while mortgage interest rates, specifically, are driven by more than just the central bank’s policies, they do go a long way toward reducing home loan borrowing costs.This was seen in 2025 as mortgage rates declined by around a full percentage point from where they began the year. And with pending data points and another Fed meeting on the calendar for later in January, this decline could easily continue ahead. At the same time, rates here may already be low enough to justify purchase or refinancing activity for many.With this all being said, then, what can actually be considered a good mortgage interest rate right now, at the start of 2026? Below, we’ll detail what buyers need to know before making any moves.See how low your current mortgage rate offers are online today.What’s a good mortgage interest rate in 2026?The average mortgage purchase rate for a 30-year term is 5.87% currently while it’s just 5.25% for 15-year options. These are just averages, however, and homebuyers can generally expect to find rates within an approximate range; some will be higher than these and others will be lower. That noted, if you can find rates for either term that are lower than these, particularly if the difference is substantial, then that can be considered a “good” or even “excellent” rate right now, in early 2026. It may not be nearly as good as it was at the start of the decade, but in this much different economy, these are generally about as good as you can get currently.Still, mortgage interest rates change each day. And there are multiple items on the calendar, just for January alone, such as the next inflation reading and the end-of-month Fed meeting, that could cause rates here to decline further. While those declines are expected to be gradual, any movement downward helps buyers who otherwise may have been stuck on the sidelines waiting for an affordable moment to act.So, how do you find a mortgage rate under 5.87% and 5.25%, respectively? The same way you would have when rates were lower. Consider shopping around, getting quotes from at least three different lenders to establish a baseline. Then try to have them compete for your business by comparing the lowest options. But don’t forget about closing costs and fees that could negate some of the advantages of the low rate you see on paper. It can also help to have a down payment larger than the traditional 20% most lenders require, as this represents less risk for the lender and that often translates into a lower rate for the borrower. And don’t go into the process with too much debt or a mediocre credit score, both of which can result in rate offers materially higher than those listed above, assuming you’re approved at all. And remember that an informed, strategic and careful approach is always the right way to borrow money, but especially with a mortgage in today’s unique economic landscape.Shop for low mortgage rates online here.The bottom lineThere have been enough changes in the mortgage interest rate climate for buyers to now be able to find “good” rates. While not as low as they were a few years ago, it’s important to remember that today’s rates are aligned with historical averages. And there’s never a guarantee that rates will fall any further from where they are currently. So, if you find a home you want to buy and can comfortably afford the associated mortgage payments, consider acting with one of today’s available rates now. You can always refinance to a lower rate in the future, if and when they materialize.
