Mortgage Rates Today, Thursday, February 26: Higher But Still Seeing Fives

Mortgage interest rates are higher today, but we still see lenders quoting sample APRs as low as 6%. We last saw rates this low in September 2022.

The average interest rate on a 30-year, fixed-rate mortgage came in at 5.93% APR, according to rates provided to NerdWallet by Zillow. This is 12 basis points higher than yesterday and 16 basis points higher than a week ago. (See our chart below for more details.) A basis point is one-hundredth of a percentage point.

If you want to know “When will mortgage rates fall?”, folks – they have. If you want to know why they’re falling, that’s a more complicated answer. We’ll dive into that below the graph.

There are mortgage rates. constantly changing, Since a large part of How are rates determined? Depending on the reaction to new inflation reports, job numbers, Fed meetings, global news… you name it. For example, even small changes in the bond market can change mortgage rates.

Looking at all of our usual front-stage indicators—things like inflation data and Federal Reserve moves—mortgage rates should be rising. But NerdWallet’s mortgage index, which uses rates provided by Zillow, saw 30-year fixed rates below 6% as of Feb. 13. It was early, but not so early: I started seeing lenders’ rates starting at five on February 17th, and that time may have had an effect on my three-day rate at the end of the week. Off, people, boundaries are important.)

As big data cuts and economic headlines make it seem like rates should be higher, we need to look behind the scenes to see why mortgage rates are actually falling. Oh, it’s going to get messy in here.

Mortgage rates are a less key benchmark for 10-year Treasury notes, because mortgages behave similarly—although most home loans have a 30-year term, in reality, most homeowners sell or refinance long before that. Mortgage-backed securities, or MBS (investments that are essentially bundles of similar home loans) are slightly riskier than a 10Y T-Note, because borrowers can pay off their loans early with a sale or refinance, or they can go into default. Thus, there is always a spread between the mortgage rate and the 10YT. Mortgage rates are higher to account for the additional risk.

Some have noted that Treasury yields have fallen in recent days, as investors haven’t reacted much. Supreme Court Tariff Decision On February 20. but on the reaction of the President. Fears of a trade war are causing a flight to safety, which means investors are ditching stocks for more reliable bonds. When there is high demand. Bondsproduction decreases. That’s because while bond prices are rising, the amount they pay—called the coupon rate, but it’s basically interest—doesn’t change.

Mortgage rates and 10-year Treasuries move in tandem, so it makes sense that yes, as yields fall, rates should fall as well. As I keep saying, 30-year fixed mortgage rates that started at five were looking out of the woods before the February 20 Supreme Court ruling. More going on.

Mortgage rates and 10YT yields move together, but they need not move in parallel. As it turns out, the spread between mortgage rates and the 10YT yield (often called the mortgage spread) is narrowing. Remember three paragraphs ago when I said that mortgage-backed securities are always riskier than Treasuries, so there’s always a premium reflected in mortgage rates? Narrowing spreads means that, somehow, mortgages have become less risky.

Here’s how If you’ve read this far, you probably remember that in January President Trump ordered $200BN worth of MBS purchases (you mostly remember because mortgage rates suddenly fell when that happened). At the time, one of the main criticisms was that a one-time cash infusion would not have much of an impact, unlike a steady purchase of MBS. Federal Reserve During the economic crisis, the housing market has been cornered. Basically, when mortgage lenders know there are buyers for the loans they are selling, it allows them to lower mortgage interest rates.

The Federal Reserve has pulled back from buying MBS, but behind the scenes, it looks like government-sponsored enterprises. Fannie Mae and Freddie Mac I have stepped. Looking back over the past year, the GSEs have been buying billions of dollars worth of MBS each month, with purchases trending up as the year goes on. (The latest numbers are for December 2025 — I’d like to see January 2026.)

Fannie and Freddie increased their portfolio holdings even more significantly—in other words, buying mortgages in the secondary market but then keeping them on their books instead of tying them up in MBS to sell. Between January and December 2025, Fannie Mae’s intact mortgage portfolio grew by nearly 60%, while Freddie Mac’s portfolio of mortgage-related investments grew by about 43%.

Why would Fannie and Freddie start hanging on to more debt? We can totally speculate on that. But what I’m wondering is whether a one-two combo of the GSEs making less MBS (hanging on to loans) as well as buying more MBS is helping to lower rates by simultaneously limiting supply and increasing demand.

If today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are now, if your current rate is 6.43% or higher you may want to start considering a refinance.

Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term or turn home equity into cash? For example, you may be more comfortable paying a higher rate for a Cash Out Refinance More than you would for a rate and term refinance, as long as the total cost is lower than if you kept your original mortgage and added a HELOC or home equity loan.

If you’re looking for a lower rate, use NerdWallet. Refinance Calculator To estimate the savings and understand how long it will take to break even the refinancing costs.

There is no universal “right” time to start buying – what matters is whether you can comfortably afford a mortgage at today’s rates.

If the answer is yes, don’t wait too long to see if you can miss out on lower rates later. You can refinance down the road. Focus on getting. Pre-approvedComparing lender offers, and figuring out what monthly payment works for your budget.

of NerdWallet Affordability Calculator Can help estimate your potential monthly payment. If a new home isn’t in the cards just yet, there are still things you can do to strengthen your buyer profile. Take this time to pay off existing debts and increase your down payment savings. Not only will this free up more cash flow for future mortgage payments, but it can also get you a better interest rate when you’re ready to buy.

If you already have a quote you’re happy with, you should consider it. Locking in your mortgage rateEspecially if your lender offers a float-down option. A floatdown allows you to take advantage of a better rate if the market falls during your lock-in period.

Rate locks protect you from hikes during your loan process, and with the market forever bouncing around, the peace of mind can be worth it.

The rate you see advertised is a Sample rate – Usually for a borrower with perfect credit, make a large down payment, and pay off Mortgage points. It won’t match every buyer’s situation.

In addition to market factors beyond your control, the quote you want depends on you:

• Location and type of property

Even Two people with the same credit score Depending on their overall financial profiles, different rates may be available.

Maybe – but even personalized rates Can be changed until you lock. This is because lenders adjust prices several times a day in response to market changes.