Mortgage rates have fallen to their lowest points in more than three years, according to Freddie Mac data released on January 15, 2026. The national average for a 30-year fixed-rate mortgage now stands at 6.06%, down from 7.04% in mid-January 2025. The 15-year fixed mortgage rate averages 5.38% this week.
President Trump has proposed unfreezing mortgage rates from over 6% by pushing government-sponsored enterprises Fannie Mae and Freddie Mac to purchase billions in mortgage bonds. "This could bring rates down in the short run by a small amount, but to really move mortgage markets, you would need large, sustained, and credible asset purchases," said Realtor.com senior economist Jake Krimmel.
The Federal Reserve lowered the fed funds rate three times in 2025, with cuts of 25 basis points each in September, October, and December. Mortgage rates often decline ahead of anticipated Fed meetings but may not continue dropping afterward, as seen in 2024 and 2025. The Fed has indicated one rate cut planned for 2026, though no change is expected at its upcoming meeting later this month.
Mortgage rates closely follow the 10-year Treasury yield, which opened at 4.13% on January 15, down from 4.76% a year prior. The spread between the 30-year mortgage rate and the Treasury yield has narrowed to 1.93%, compared to 2.28 percentage points a year ago, contributing to lower rates.
Data from the Federal Reserve Bank of St. Louis shows the median sale price of single-family homes rose from $208,400 in Q1 2009 to $410,800 by Q2 2025. The current housing market faces high demand and limited supply, particularly for first-time buyers, keeping prices elevated.
Expert forecasts vary on future rate movements. The Mortgage Bankers Association predicts the 30-year fixed rate will stay around 6.4% throughout 2026, while Fannie Mae's December Housing Forecast projects it will fall to 5.9% by year-end.