Mortgage interest rates continue to linger near one-year highs, driven by bond market volatility — despite government bond buybacks initiated by Treasury Secretary Scott Bessent. According to the Zillow lender marketplace, the average 30-year fixed rate today, Friday, August 21, 2026, is 6.50%, down two basis points since yesterday.

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The 15-year fixed loan is currently at 6.00%, eight basis points higher than yesterday. The 5/1 ARM is 6.25%, 29 basis points lower than on Thursday. National averages are subject to change and may vary depending on individual circumstances.

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Current Mortgage Rates

Here are the current purchase rates, according to the latest Zillow data, for Friday, August 21, 2026:

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• 30-year fixed: 6.50%
• 20-year fixed: 6.27%
• 15-year fixed: 6.00%
• 5/1 ARM: 6.25%
• 7/1 ARM: 6.12%
• 30-year VA: 6.50%
• 15-year VA: 5.43%
• 5/1 VA: 5.71%

Current Mortgage Refinance Rates

These are the latest refinance rates, according to the latest Zillow data, for Friday, August 21, 2026:

• 30-year fixed: 6.60%
• 20-year fixed: 6.37%
• 15-year fixed: 5.93%
• 5/1 ARM: 6.38%
• 7/1 ARM: 6.51%
• 30-year VA: 6.05%
• 15-year VA: 5.67%

How Mortgage Interest Rates Work

A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.

A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you obtain a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.

An adjustable-rate mortgage locks in your rate for a predetermined period and then adjusts it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term.

At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years. However, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

Which Mortgage Term Length Should You Get?

A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term, and you will pay significantly more in interest over the years.

You may want to consider a 15-year fixed-rate mortgage if you aim to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.

Typically, an adjustable-rate mortgage might be suitable if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, and then your rate will change after a predetermined amount of time.