3 mortgage interest rate options under 6% to know now

It wasn't that long ago when the average mortgage interest rate was comfortably over 7%. 

In August 2023, for example, the average rate on a conventional 30-year term was 7.31%, marking the highest level since 2000. Interest rate cuts in 2024 only temporarily caused those rates to decline. With inflation an ongoing concern at the end of 2024 and into 2025, the average rate on a 30-year term in January was 7.04%, according to FreddieMac data.

But the subsequent 11 months have seen real changes in the mortgage rate climate. The Federal Reserve cut rates in September and October and is now well-positioned to do so in its final meeting on December 10. Mortgage rates in recent months have fallen to, slightly risen and fallen back to 3-year lows. So, while not nearly as low as they were at the beginning of the decade, rates here overall are moving back in a favorable direction for both buyers and owners looking to refinance.

And, according to Zillow, there are a few average mortgage purchase and refinance rates that are already under 5%. Below, we'll detail three worth exploring right now.

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3 mortgage rate options under 6% to know now

A mortgage rate under 6% represents a real potential savings opportunity for both buyers and owners, especially compared to what's been available in recent years. Here are three rates worth considering in today's cooling interest rate environment:

A 30-year mortgage purchase at 5.99%

While just one basis point under 6%, the conventional 30-year mortgage is now considerably more affordable than it's been during most of the last two years. And with this just being the average, with a little time spent shopping for lenders, you may be able to find an even lower rate. 

Remember, too, that this is the average as of December 3, 2025. Some lenders may have already priced in a presumed Fed rate cut for next week, but others may be waiting for that reduction to reduce their offers. In other words, this average can potentially decline even further later in the month once the next Fed rate cut truly has a chance to reverberate through the lending environment.

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A 15-year mortgage purchase at 5.37%

A 5.37% mortgage interest rate sounds affordable on paper, but the details here matter. This is the average rate for a 15-year term, not a 30-year one, meaning you'll need to pay off your loan in half the time you normally would. And that usually equates to much larger monthly payments thanks to the condensed timeline. But it also translates into real interest savings that otherwise would have been spent over the traditional three decades. So, there's much to weigh here before getting started. A 15-year mortgage term, even at 5.37%, isn't for every homebuyer. But for those buyers looking to pay as little interest as possible, even if it comes at the temporary cost of larger monthly payments, this can be a viable option worth considering now.

15-year mortgage refinance at 5.56%

For current homeowners saddled with interest rates in the 6.50% to 7.00% range now, a refinance into a 15-year term with a 5.56% rate could be worth exploring. While this may result in larger monthly payments, as noted above, it largely depends on how much of a mortgage balance you currently have. 

At a minimum, it's worth taking the time to calculate the costs with an online calculator to determine how much you may be able to save. While most experts recommend waiting to refinance until you can secure a rate a full percentage point lower than your existing one, even a rate that's half a percentage point lower may make sense. In other words, no matter which threshold you use, if you have a rate over 6.50%, it can be worth refinancing into the 5.56% rate now.

What to understand about average mortgage interest rates

While the above mortgage interest rates are the averages provided by Zillow, buyers and owners are likely to see a variety of rate options when they search online. The average 30-year mortgage rate, according to FreddieMac, for example, is now 6.23%, almost a quarter of a point higher than today's Zillow average. That disparity is smaller with 15-year purchase terms, however, with FreddieMac's average just 14 basis points higher at 5.51%. 

This is why it's critical to shop around for rates and lenders before committing. Shopping for mortgages has been proven to save buyers thousands of dollars over the life of the loan, so a little extra research and homework here could easily pay off – perhaps with a rate even lower than those outlined above. And remember that mortgage rates change each day, so daily monitoring will be required if you're anticipating taking action soon.

The bottom line

Mortgage rates are gradually moving below the 6% mark now, depending on the term and the lender in question. If you've been waiting for a more affordable time to buy or refinance, you may want to consider taking action soon. And don't forget the role your own borrower profile plays in this process. Without a good credit score, clean credit history and an ability to make a sizable down payment, you likely won't be able to qualify for any of the sub-6% rates available now. Consider working on those items, then, before applying.