Mortgage rates are expected to remain above 6% for the foreseeable future, but there are ways to secure a lower rate. Government-backed loans like VA and FHA offer lower rates than conventional loans. For example, the average rate on VA loans was 5.90% and 5.88% for 30-year FHA loans on Dec. 16, 2025.

Discount points can help lower your interest rate by paying a fee at closing. Buying points can save you money in the long run if you plan to stay in your home for a while. Calculate the break-even point to determine when the savings from points will outweigh the cost.

Your credit score plays a significant role in the interest rates you qualify for. Borrowers with higher credit scores receive lower rates. For example, borrowers with a 780 credit score had an average rate of 6.14%, while those with scores under 680 had a rate of 6.59% from Sept. 9, 2025, through Dec. 9, 2025.

Adjustable-rate mortgages (ARMs) often have lower interest rates than fixed-rate mortgages. ARMs can provide lower monthly payments for the initial years of the loan, but the rate can rise after the initial period. ARMs are best for those who plan to sell or refinance before the rate adjusts.

Experts predict mortgage rates won’t drop below 6% soon, but Fannie Mae forecasts a 5.9% rate by the end of 2026. To secure a rate below 6%, consider strategies like buying discount points, improving your credit score, and comparing mortgage lenders. Timing the market is difficult, so waiting for lower rates may not be worth it.

To qualify for a 5% mortgage rate, you may need to opt for a short-term or adjustable-rate loan, buy discount points, or get a temporary rate buydown. A 5% rate is possible but may not be achievable on a 30-year mortgage in the current market. Comparing options and working with a loan officer can help you secure the best rate for your situation.

Read more at Yahoo Finance: 8 strategies for getting a mortgage rate under 6%