I want to start by discussing the 15-year fixed mortgage rate. According to Freddie Mac's PMMS statistics for 2026, the 15-year fixed rate is currently about 0.5 to 0.7 percentage points lower than the 30-year fixed rate. Having observed loan consultations in Augusta for decades, I can definitely feel that interest in 15-year products has increased compared to the past.

The 30-year fixed rate is currently understood to be in the mid to high 6% range. Let's examine how this number is determined. First, it's the yield on 10-year Treasury bonds. The 30-year fixed mortgage has historically moved in tandem with this long-term rate. Second, it's the Federal Reserve's benchmark interest rate and inflation indicators. Whenever the price indicators fluctuate, the bond market reacts, and mortgage rates also swing accordingly. Third, it's the supply and demand in the MBS market. The demand from investors looking to buy mortgage-backed securities influences the level of loan rates.

In the past, it was thought that borrowers didn't need to know this background, but that has changed. Borrowers who have experienced significant fluctuations in rates over the years are much more curious about the reasons behind them.

When comparing ARMs to fixed rates, 5/1 or 7/1 ARMs often start with lower rates during the initial fixed period than the 30-year fixed. From my long-term observation, ARMs were avoided during periods of rising rates, but in a relatively stable phase like now, they are becoming a viable option for those with clear plans to sell or refinance within 5 to 7 years.

The differences in credit score ranges are still significant. Comparing scores above 760 to those in the 620 range shows a notable gap in rates and points. However, the exact figures can vary based on the loan product and the combination of DTI and down payment, so it's difficult to make a blanket statement about it.

In Augusta, where the turnover of listings is slower compared to larger cities, it's advantageous to allow ample time for loan preparation. It's essential to manage credit card usage at least six months before applying for a loan, refrain from opening new accounts, and organize documentation for the source of down payment funds.

A piece of advice I always emphasize to Korean households is to take their time and compare estimates from at least three lenders. In the past, many would only get an estimate from one place, but now, with online comparisons becoming easier, more households are comparing multiple options. The difference becomes evident in closing costs and overall interest burden.

From my long-term perspective in the market, I can conclude that while rates will always fluctuate, the most important factor is that individuals can control their credit and financial preparation.