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Today’s mortgage rates

Here’s how to refinance wisely By Alisa Wolfson Following years of uber-low pandemic-era mortgage rates, more homeowners now have mortgage rates above 6% than below 3%, according to a new Redfin analysis released in late February, of the Federal Housing Finance Agency National Mortgage Database that uses data through the third quarter of 2025. Indeed, in the third quarter of last year, 21.2% of mortgaged homeowners had an interest rate of 6% or higher, while only 20% had rates below 3%. If you’re in that 6% range, there may be good news on the horizon. Mortgage rates dipped into the 5s last week, meaning it might make sense for those with mortgages in the high 6s and 7s to refinance. (You can see some of the lowest rates in your area here, from our ad partner Bankrate.) Here’s when it does — and does not — make sense to refinance. “A general rule of thumb is for rates to drop 75 basis points [1 basis point is equivalent to 0.01%] before it’s considered economical. However, for those sitting at a 6.5% or 7% and above rate, even 50 points could be advantageous,” says Erik Schmitt, consumer direct executive at Chase Home Lending. Some say you might want to be a bit more conservative: “The rule of thumb is that if you can achieve a full 1% better rate than you currently have, it makes sense to consider it,” says Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage. “Make sure you take closing costs into account, for example if you’re going to save $1,000 per month on your payment, but the closing costs are $10,000, you can determine it will take 10 months to start realizing those savings,” says DeFlorio. For her part, Michelle Parkison, senior vice president of capital markets at AD Mortgage, says identifying the primary financial catalyst is a critical step of refinancing. “The path you take depends entirely on your desired outcome. To successfully reduce your monthly obligation, the formula generally requires a combination of a lower interest rate and a reduced principal balance. This approach frees up immediate cash for other investments or household expenses. If your goal is to pay less over the duration of the loan, utilizing an amortization calculator is essential. Often, the most effective move is transitioning to a shorter loan term. While this may result in a higher monthly payment, the reduction in total interest expense can be substantial,” says Parkison. Before settling on refinance terms, look at your blended rate [a weighted average of your existing and new loan rate], especially if you have a home equity loan, HELOC or private mortgage insurance. “This helps you understand the true cost of your financing. In some cases, refinancing into a slightly higher primary mortgage rate to eliminate PMI or consolidate debt may not sound appealing, but it can save you money over the long run. Given today’s record levels of home equity, a cash-out refinance may also be worth considering. This can allow you to consolidate higher interest debt or finance large expenses such as renovations, college tuition or medical costs into a single mortgage,” says Jeff DerGurahian, chief investment officer and head economist at loanDepot. Indeed, before refinancing, you want to be sure you’re going to stay in your home long enough for the math to make sense. “This is called your break-even point. Talking to a mortgage loan professional is a great first step to understanding what your strike rate is for refinancing,” says John Hummel, head of retail home lending at U.S. Bank. We asked 10 lending and mortgage experts for their top refinancing tips and tricks. Don’t discredit your current servicer Before refinancing, you’ll want to check with your current servicer who may have different rates or refinance incentives. “By refinancing with a current servicer, borrowers may not have to pay out of pocket escrows at closing. Additionally, servicers may offer no lender fees to current customers, so borrowers would only pay third party costs like recording the new mortgage, title insurance and credit reports,” says Adam Spigelman, SVP at Planet Home Lending. Different lenders offer different levels of customer service. “Larger traditional lenders like U.S. Bank have mortgage professionals who maintain longstanding relationships with their clients while also offering digital tools that make managing and understanding your mortgage easy,” says Hummel. Look into less obvious savings tactics “Ask about term adjustments, rate buydowns and PMI removal. These can all mean short- and long-term debt savings,” says Ralph DiBugnara, founder and president at Home Qualified, a digital resource for buyers, sellers and realtors. Look beyond rates “One strategy that is often overlooked is adjusting your loan term. If your financial situation has improved, refinancing into a shorter-term loan could significantly reduce the total interest paid over time, even if the monthly payment increases slightly,” says Jeffrey Ruben, president of WSFS Home Lending at WSFS Bank. Don’t lock yourself into a traditional fixed-rate mortgage “When you refinance, you don’t have to limit yourself to a traditional fixed-rate mortgage. Depending on your goals, such as how long you plan to stay in your home and whether you expect your income to rise, you may want to consider an adjustable-rate mortgage, which can offer lower initial rates,” says DerGurahian. Keep in mind that ARMs can result in higher monthly payments once the fixed period ends. “Depending on your current loan type and origination date, such as with FHA or VA loans, you may also be eligible for a streamline refinance. This option allows you to refinance without going through the full application process which can reduce paperwork, time and costs,” says DerGurahian. To apply for a streamline refinance, you’ll need to have an existing FHA loan, at least 210 days must have passed from the closing date of your mortgage and you must be current on payments, having made at least six payments. If you can, make additional payments “If refinancing lowers your monthly payment, one option is to keep paying what you pay today and apply the difference toward your loan balance. That can help you pay off the loan faster and reduce the total interest you pay over time,” says Karl Benjamin, certified mortgage banker and executive vice president of third-party origination at Cardinal Financial. Get prepared early “Preparation matters just as much in refinancing as it does when purchasing. When rates move meaningfully lower, activity increases quickly. Borrowers who evaluate their options early often secure stronger outcomes than those who wait for perfect conditions,” says Benjamin. “It’s strongly advised that you connect with a mortgage loan professional to understand your strike rate and everything you will need to be prepared to take advantage when the market presents itself. Refinancing volume has increased as rates have dropped, so ensure you’re having the conversation with a mortgage loan professional on the refinancing process, including current turn-times to close so you have transparency around the process and timing,” says Hummel. Explore netting escrow “This allows the borrower to lower the cash to close when refinancing if they’re using an escrow account. Not all lenders will allow for this. Another trick is rolling the costs of the refinance into the mortgage. This can be viewed as going the wrong way, but many borrowers are more concerned about saving on a monthly basis versus owing a bit more,” says Kevin Leibowitz at Grayton Mortgage. Shop around “Get multiple bids, primarily from reputable online mortgage companies and community banks. These almost always have better rates and more flexibility than the national lenders with retail locations,” says Ryan Meehan at TaxDrop, a property tax savings platform. You can see some of the lowest mortgage rates in your area here, from our ad partner Bankrate. Consider your timing “If you have a home that has appreciated quickly, it’s important to keep in mind that you need to own the property for a full year and a day before you can refinance based on a new appraisal, as many lenders require you to use the original purchase price during that window,” says DeFlorio. Home appreciation plays a pivotal role in refinancing. “A lower loan-to-value (LTV) ratio, bolstered by rising property values can be a powerful tool, potentially allowing you to eliminate costly private mortgage insurance and further increasing your net savings,” says Parkison.

What's the mortgage interest rate forecast for March 2026? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. By Matt Richardson February 25, 2026 / 10:53 AM EST / CBS News Mortgage rates have changed a lot in recent years. At one of their highest points, in October 2023, 30-year fixed rates climbed to 7.79%, which pushed millions of would-be buyers out of the market. Since then, a combination of six Federal Reserve rate cuts totaling 1.75%, cooling inflation and declining Treasury yields have slowly brought rates down. As of February 25, 2026, it's possible to secure a 30-year rate under 6% for qualified borrowers. With no Fed meeting in February, borrowers haven't had much to hang their hopes on. While the central bank doe not directly set mortgage interest rates, its policy decisions can have a broad influence on the overall market. The bank meets again on March 17 and 18, and experts generally expect the Federal Open Market Committee (FOMC) to hold interest rates at their current target range of 3.50% to 3.75%. So, how will these factors influence mortgage interest rates this month? And where could mortgage interest rates be headed as the year progresses? We asked some experts for their predictions. What's the mortgage interest rate forecast for March 2026? The experts we spoke to generally anticipate mortgage rates holding steady or dipping modestly in March. They anticipate the same factors that have been gradually pushing rates down continuing to do so. Those factors include a gradual decline in the 10-year Treasury yield and a fall in the Consumer Price Index (CPI) from 2.7% in December to 2.4% in January. Meanwhile, the Federal Reserve has been holding rates steady as they look for clearer economic signals. "I would expect that mortgage rates would stay pretty steady over March 2026," says Mark Schweitzer, associate professor of economics at Case Western Reserve University. "There is an FOMC meeting, but market expectations favor no change in the Fed funds rate. The most important data will be the upcoming CPI report on March 11." Andrew Postell, sales manager and VP of mortgage lending at Rate.com, notes that rates may not look like they're moving in the short term, but the cumulative shift over time has been significant. "Mortgage rates have been decreasing incrementally over the past two years or so. Week-to-week, it may not seem like a lot, but add it up over time, and the savings are substantial. We are nearly two points lower on the average interest rate from October 2023." The Fed meeting in March will surely draw plenty of attention, but Ralph DiBugnara, founder and president of Home Qualified, says borrowers should focus on what the Fed says, not just its policy decisions. "What most don't realize is that it's not the actual cut or raise of interest rates by the Fed that's most important, but how they are forecasting the future. If the commentary post meeting is that the economy is showing signs of leveling out and coming down, there's a good chance the feds can look towards the policy of cutting in the future," DiBugnara says. The conversation around mortgage rates has changed in recent months as the question of whether rates could reach 6% has effectively been answered. As mentioned, average rates nationwide now sit below 6%. So, where do mortgage interest rates go from here? The experts we consulted project rates to remain firmly in the neighborhood of 6%, with some room on either side depending on the economic data we see in March. Schweitzer anticipates an average rate range of "roughly 5.9% to 6.3%, unless the data surprises us." He doesn't anticipate a sub-6% average rates being the norm in March. "30-year fixed rates realistically dropping below 6% in March is not the most likely outcome, but 30-year mortgage rates are only a little bit above 6% now. If inflation came in low or employment growth was weak, that could cause a large enough dip in Treasuries to reach a mortgage rate below 6%," he says. DiBugnara's projection range is a bit wider, factoring in the possibility of more volatility. "Realistically, I see 5.75% to 6.25% on a 30-year fixed-rate for averages. That range reflects mild improvement potential, but also room for volatility if economic data surprises," he says. The bottom line While it's important to understand where mortgage rates are headed, buyers should be cautious if trying to time the market. After all, unexpected economic indicators and geopolitical events could easily disrupt any well-reasoned projection. Ultimately, if you find a home that fits your needs and budget, you may need to act fast. Locking in a rate now allows you to make an offer before rates or home prices rise. Besides, you can always refinance later if rates drop closer to 5%. If you anticipate rates could drop while you're in escrow, ask your lender about getting a floating rate that adjusts down if rates fall before closing. Edited by Angelica Leicht

I’m in Real Estate: 7 Cities Where Millennials Should Invest in Property in 2026 January 18, 2026 4 min Read Written by Vance Cariaga Edited by Brendan McGinley The youngest millennials will turn 30 years old in 2026, which is usually about when people start thinking hard about buying a house. Times have changed, however. The typical age of first-time home buyers climbed to an all-time high of 40 years as of June 2025, according to a new report from the National Association of Realtors. That kind of stat is “shocking,” said Lynette Arrasmith, Home Loan Specialist at Churchill Mortgage. “It tells me that millennials don’t know what they don’t know, and they likely assume they can’t afford to buy — a misconception that isn’t true,” Arrasmith told GOBankingRates. One way to make homeownership more affordable is to finance itself as a rental property. Millennials looking to invest in a home or other types of real estate have plenty of opportunities if they look in the right place. Below are seven cities where millennials should consider investing in property in 2026, according to real estate agents and other experts. Birmingham, Alabama Cost-of-living score: 87 Median age: 35.7 Birmingham offers excellent real estate investment opportunities for millennials — as long as they search the right areas. Dani Beit-Or, founder and CEO of real estate investment platform Simply Do It, recommends the suburbs because that’s where you’ll find “stable jobs” and people who want to raise families. “I’m looking at areas with good schools, new construction and tenants that want to stay put,” Beit-Or told GBR. Cedar Rapids, Iowa Cost-of-living score: 81.8 Median age: 36.5 For millennials interested in investing in rental properties, Cedar Rapids offers a “major under-the-radar opportunity with demand exceeding available listings,” according to Jeff Hurst, CEO of Furnished Finder, a leading platform for monthly and mid-term rentals. Lower entry prices make investing “more accessible.” “Consistent” mid-term rental demand driven by hospital systems and corporate relocations. Less competition from institutional investors, giving millennials “room to scale.” Nashville, Tennessee Cost-of-living score: 104.7 Median age: 37 Nashville is a hot housing market with a slightly above average cost of living, mainly because of Music Row and downtown. But that’s not necessarily where millennials should invest in property. “The suburban markets around the Nashville metro give my clients the most bang for their buck, and they get to enjoy the benefit of a strong economy and growth without the inflated prices,” Beit-Or said. New York, New York Cost-of-living score: 172.5 Median age: 38.8 The Big Apple will never qualify as “affordable.” But for millennials interested in investing in rental properties, it offers plenty of potentially lucrative opportunities, Hurst said. Here are reasons he believes New York City is “ideal” for millennial investors: High search volume means “quicker match times.” Three out of four landlords on Furnished Finder get tenant interest within 30 days Flexible, furnished listings “appeal to the city’s large academic, business and relocation tenant base.” Omaha, Nebraska Cost-of-living score: 90.8 Median age: 35.9 Arrasmith points to Omaha’s affordability as one of its main attractions for millennial property investors. “Our average closed price for new construction is under $500,000, and for an existing home under $370,000, she said. “Owning real estate is a fantastic way to build wealth, and in Omaha, we’ve consistently seen 4%-5% appreciation in our market year-over-year.” Raleigh, North Carolina Cost-of-living score: 105.8 Median age: 34.9 Ralph DiBugnara, founder and president of real estate investment platform Home Qualified, gives Raleigh high marks for its robust tech industry and potential to benefit from employer-mandated return-to-office initiatives. “A great strategy for 2026 would be to look into any cities that are growing population because of workforce,” he told GBR. “This can be a major needle mover in higher prices for real estate.” St. Louis, Missouri Cost-of-living score: 84.1 Median age: 37.2 The St. Louis metro area “checks a lot of boxes” for millennials interested in home investments, Beit-Or said. He pointed to “stable jobs” from major healthcare systems and Fortune 500 employees, as well as “landlord-friendly” state laws that protect investments.