Today’s Mortgage Rates, Feb 4: 30-Year Fixed Rate Holds Steady Around 5.98%

As of February 4th, if you're thinking about buying a home or looking to refinance your current mortgage, I've got good news: mortgage rates are offering a reassuring sense of stability. The most popular loan, the 30-year fixed mortgage rate, is holding nicely under the 6% mark, currently sitting at 5.98%, according to the latest data from Zillow. This figure is a welcome sight, representing a significant year-over-year decrease of 61 basis points compared to where we were at this time last year. It’s a clear sign that affordability has improved, and that’s a big win for many people.

Today's Mortgage Rates, Feb 4: 30-Year Fixed Rate Holds Steady Around 5.98%

The 15-year fixed mortgage rate is also showing robust performance, standing at 5.50%. This is even 73 basis points lower than this time last year, which is fantastic news for those who can comfortably manage a higher monthly payment and want to build equity faster. These numbers paint a positive picture for both aspiring homeowners and those looking to leverage their current homeownership.

Today’s Mortgage Rates: A Snapshot

Let’s break down what those numbers actually mean for different types of loans. Based on Zillow’s data as of today, February 4th, here’s how the averages are stacking up:

Understanding the Market Context

I always feel it’s important to look beyond just the headline numbers. Let’s dig a little deeper into what these individual rates signify:

The Dependable 30-Year Fixed Rate

For most people, the 30-year fixed rate is the gold standard, and at 5.98%, it's incredibly attractive. This loan type offers that precious predictability. You know exactly what your principal and interest payment will be for the next three decades. In a market that has seen its share of ups and downs over the past couple of years, having that long-term stability is a huge comfort, especially when you're making one of the biggest financial decisions of your life.

The Equity-Building 15-Year Fixed Rate

The 15-year fixed rate, currently at 5.50%, is a fantastic option if you’re in a strong financial position. Yes, your monthly payments will be higher than with a 30-year loan, but the benefits are significant. You'll pay off your mortgage much faster, and more importantly, you'll save a substantial amount on interest over the life of the loan. I’ve seen many clients benefit immensely from this path, building substantial equity in their homes years earlier than they would have otherwise.

Adjustable-Rate Mortgages (ARMs): A Closer Look

Adjustable-rate mortgages, like the 5/1 ARM at 5.92% and the 7/1 ARM at 6.12%, are showing rates that are very close to their fixed-rate counterparts. Historically, ARMs offered a lower initial rate to entice borrowers, but that gap has narrowed significantly. While they can offer a lower payment for the first 5 or 7 years, the real gamble comes with the subsequent adjustments. Given how stable the fixed rates are right now, I’d be cautious about choosing an ARM unless you have a very specific, short-term plan for the property or anticipate rates falling considerably in the future. Most people I speak with find the security of a fixed rate far more appealing today.

The Value of VA Loan Products

It’s crucial to highlight the continued strength of VA loan products. These are designed to support our veterans and active-duty service members, and they consistently offer competitive terms. With the 30-year VA at 5.53% and the 15-year VA at 5.23%, these rates often beat conventional loan options. For eligible borrowers, VA loans are not just about lower interest rates; they often come with no down payment requirements and no private mortgage insurance (PMI), which can translate into significant savings.

What Today’s Rates Mean for You

Understanding these rates is one thing, but how do they impact you specifically?

• For Refinancers: If you took out a mortgage when rates were higher, say above 6.5% or even 7%, now is absolutely the time to explore refinancing. The year-over-year decrease I mentioned earlier means you could potentially lower your monthly payments, shorten your loan term, or tap into your home's equity. It's a smart financial move to review your current mortgage and see if you can benefit from these improved rates.
• For New Buyers: The stability of rates under 6% is precisely what helps buyers budget effectively. Knowing your biggest housing expense (your mortgage payment) is predictable makes the homeownership journey less stressful and more achievable. This environment allows buyers to feel more confident in their long-term financial planning.
• For Investors: Lower mortgage rates can significantly improve the cash flow on investment properties. This means that rental income has a better chance of covering the mortgage payment and other expenses, potentially leading to a higher return on investment. For those looking at rental properties in strong markets, today’s rates make those deals look even more enticing.

Recent Market Moves and What They Tell Us

It’s not just about today's numbers; it’s about understanding the forces that shape them. I’ve been watching the market closely, and a few recent events stand out:

• The $200 Billion Bond Buy: Not too long ago, we saw rates drop below 6% for many because of a significant move by government-sponsored enterprises like Fannie Mae and Freddie Mac. They were directed to purchase a substantial amount of mortgage-backed securities. This injection of liquidity is designed to directly improve affordability for borrowers, and it clearly had a positive effect on bringing rates down.
• The “Greenland Jump” Phenomenon: You might have heard about a sudden, albeit temporary, spike in rates. This event, which was linked to geopolitical news about the U.S. potentially acquiring Greenland, really highlighted how sensitive the mortgage market can be to global events. It showed me that even seemingly distant concerns can have a ripple effect on something as fundamental as mortgage rates. It's a vivid reminder that unexpected news can influence market behavior.
• The Fed's Pause: The Federal Reserve made its decision at its January 28th meeting to keep its benchmark interest rate steady. This follows a series of rate cuts in late 2025, and the Fed’s continued stance of maintaining the target range between 3.50% and 3.75% signals a commitment to stability. While the Fed rate isn't directly mortgage rates, it strongly influences them, so this pause is a key factor in the current market.

Looking Ahead: What's Next for Mortgage Rates?

My opinion is that we're likely to see mortgage rates continue to hover around that 6% mark in the near future. If inflation keeps showing signs of cooling down, that could exert even more downward pressure on rates. Keep an eye on Federal Reserve pronouncements and the movement of Treasury yields, as these will be the main drivers dictating rate trends for the first half of 2026.

There’s also a lot of talk about how rate drops impact the market. Analysts from the National Association of Realtors (NAR) predict that every 1% drop in mortgage rates could make an additional 5.5 million households eligible to buy a home. While this is fantastic for increasing homeownership, it’s also something to consider, as increased demand could put upward pressure on home prices. It’s a delicate balance, for sure.

In Conclusion: A Favorable Moment

To wrap it up, today, February 4th, mortgage rates are offering a welcome sense of stability. With the 30-year fixed at 5.98% and the 15-year fixed at 5.50%, both showing significant improvement from last year, this is a valuable time for anyone looking to make a move in the housing market. Whether you’re buying your first home, looking to upgrade, or considering refinancing an existing loan, the current rate environment provides an excellent opportunity to secure favorable terms.