Today’s Mortgage Rates, Jan 27: 30-Year Fixed Rate Drops Below 6% Level

As of January 27, 2026, it looks like things are still a bit of a mixed bag when it comes to home loan interest rates. Zillow Home Loans is showing that while some loan types are seeing a slight dip, many are hovering just shy of that 6% mark. For anyone in the market to buy a home or refinance, understanding these numbers is key to making smart financial decisions.

Today's Mortgage Rates, Jan 27: 30-Year Fixed Rate Drops Below 6% Level

It’s interesting to see how the mortgage rates are continuing to play around that 6% barrier. The average 30-year fixed mortgage rate is currently sitting at 5.97%. If you're eyeing a shorter loan term, the 15-year fixed rate is looking a bit better at 5.47%. These are the numbers on the table today, and while they might seem small, even a quarter of a percent can make a big difference in your monthly payments over the life of a loan.

Current Mortgage Rates at a Glance

Here’s a breakdown of the rates as reported by Zillow for January 27, 2026:

It’s worth noting that comparing these to last week shows a small tick up for some of the most popular loan types. This isn't a huge jump, to be clear, but it’s a good reminder that mortgage rates are rarely static.

Rate Comparison: A Weekly Snapshot

Let's see how things have shifted from last week, using Zillow's data:

This slight upward movement, even by less than a tenth of a percent, is something to keep an eye on. It suggests that while rates might be staying in the low 6% range, they aren't necessarily on a downward spiral right now.

What's Influencing Today's Mortgage Rates?

So, what’s causing these little wobbles in the mortgage rate world today? It’s rarely just one thing. Think of it like a complex recipe with several ingredients contributing to the final flavor.

Based on what I'm seeing and hearing from market analysts, a few key factors are at play:

• Federal Reserve Meeting Buzz: The Federal Open Market Committee, or FOMC, wraps up its meeting tomorrow (January 28, 2026). The big expectation is that they'll keep the fed-funds rate exactly where it is. What people are really listening for is what Fed Chair Jerome Powell says afterward. If he sounds cautious about future rate cuts, that can spook the markets, causing mortgage rates to climb. Markets often react more to what they think will happen than what's happening right now.
• Bond Market Jitters: Mortgage rates are super closely tied to the U.S. bond market, especially the yield on the 10-year Treasury note. Lately, there have been some bumps in the road due to global events and talk about trade policies, like tariffs. This uncertainty makes investors a bit nervous, which can push bond yields higher. When yields go up, mortgage rates usually follow.
• Lingering Inflation Worries: While inflation has cooled down quite a bit from its peak, it’s still a concern. If prices keep creeping up faster than expected, it hints that the Fed might keep interest rates high for longer. And when the Fed keeps its main interest rate high, it puts upward pressure on longer-term rates like mortgages. On the flip side, if the economy were to show clear signs of slowing down or if the job market cooled off significantly, that would usually be good news for lower mortgage rates. But right now, it feels like inflation is still on the radar.
• Government Spending Habits: This is something many people don't think about, but it's a pretty big deal. The U.S. government is borrowing a lot of money. To fund all this spending, the Treasury has to issue a ton of new debt. When there's a lot of new debt out there, investors want a better reward – a higher yield – to buy it. This demand for higher yields on government debt helps keep longer-term interest rates, including mortgage rates, from falling too much.

These combined forces create a bit of a delicate balance. It's why the Federal Reserve mentioned in their latest report that they don't expect rates to drop significantly below 6% for much of 2026. They’re suggesting a pretty tight range, with maybe a slight upward trend. This makes forecasting daily changes tough, but it does give us a general idea of the environment we’re in.

Why Affordability is Improving

Despite the rates staying in this higher bracket, Zillow's research is actually showing some encouraging news on the affordability front. They’ve noticed that in several big cities, homebuying affordability has reached its best point in about three years. How is this possible?

It's a combination of things. First, the gradual moderation in mortgage rates, even if they’re not dropping dramatically, takes some of the pressure off. Second, in some areas, home prices might have stabilized or even seen slight decreases, which helps counteract higher interest rates. When home prices go down, you don't need to borrow as much, and that can make a difference even with the same interest rate.

Looking Ahead: What This Means for You

For potential homebuyers and those thinking about refinancing, staying informed is your superpower. Knowing that rates are expected to stay in this general vicinity for a while means there's less pressure for immediate action based on a fear of missing out on a super low rate tomorrow. Instead, you can focus on:

• Getting Pre-Approved: This is always step one. It helps you understand exactly how much you can borrow and what your monthly payments will look like.
• Shopping Around: Don't just go with the first lender you talk to. Rates and fees can vary. Get quotes from multiple lenders, including banks, credit unions, and mortgage brokers.
• Improving Your Credit Score: A higher credit score can qualify you for lower interest rates. If you have some time, focus on improving your score.
• Saving for a Larger Down Payment: A bigger down payment means you borrow less, which can lower your monthly payments and potentially help you avoid private mortgage insurance (PMI).

The market is always moving, and while today’s numbers from Zillow are a snapshot, the underlying economic forces are what shape the bigger picture. Keeping an eye on the Fed's actions, inflation reports, and overall economic health will give you the best sense of where we're headed.