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Per Homes.com: January 2026: Breaking News: Mortgage rates sink to lowest average in more than three years
Mortgage rates sink to lowest average in more than three years
The 30-year, fixed-rate stood at 6.06%, according to Freddie Mac
Lower mortgage rates have driven a surge in demand from borrowers, according to data from the Mortgage Bankers Association. Above: Homes in Cold Spring, New York. (Anthony Costa/CoStar)
Mortgage rates have dropped to their lowest average in more than three years.
In the week ended Thursday, the 30-year,fixed-rate mortgageaveraged 6.06%, according to mortgage giant Freddie Mac. It's lower than the previous week, and significantly lower than the comparable week last year, when the average was 7.04%. In fact, the last time the 30-year, fixed-rate average was that low was in September 2022.
The 15-year, fixed-rate mortgage also declined, averaging 5.38%. That's also lower than the previous week and the comparable week a year ago.
On a daily basis, mortgage rates were unchanged as of Thursday morning, according to Mortgage News Daily. The 30-year, fixed-rate was at 6.07%, the same as the previous day, and the 15-year, fixed-rate was at 5.58%, barely lower than a day earlier.
A White House proposal creates a mortgage market frenzy
The fluctuations in the mortgage landscape this week come as the market is still absorbing a social media post from President Donald Trump.
In a Jan. 8post on Truth Social, the president suggested that he was going to implement a major mortgage bond-buying initiative, telling "my representatives” to buy $200 billion in mortgage bonds. It's a move, he said, that would help drive down interest rates and "make the cost of owning a home more affordable."
Trump said government-sponsored mortgage giants Freddie Mac and Fannie Mae— the entities that buy and bundle mortgages from banks to keep money flowing and homeownership within reach — have that $200 billion in cash. It was not immediately clear which agency would buy those bonds, though.
Indeed, since then, mortgage rates have eased. Immediately after the announcement,daily mortgage rateseven briefly slipped below the 6% threshold for the first time since 2022. That set off asurge in demand for mortgagesand refinancing: The Mortgage Bankers Association reported a 30% increase in applications in the week ended Jan. 9.
As markets continue to digest the president's news — as well as process incoming data on the economy, including updates on the labor market and inflation — things have started to level out. Daily mortgage rates, for example, are back above the 6% threshold again.
The housing market gets a boost
Whether the downward pressure on rates and upward pressure on demand continue is hard to say, according to economists and lenders.
On the one hand, "increasing the demand for mortgage-backed securities ... puts upward pressure on their prices and, therefore, downward pressure on their yields," according to Brad Case, chief residential economist at Homes.com.
"So, it's likely that the policy will push mortgage rates down, as long as the policy can be continued," he said.
At the same time, though, the $200 billion might not last as long as needed to create lasting change, according to Dan Frio, a lender with PBT Bancorp in Kentucky, who told Homes.com he sees the recent market changes as "a temporary reprieve."
Even so, the boost comes at an important time for the housing market: The spring selling season, typically the busiest time for the industry, is about to begin.
"The impacts are noticeable, as weekly purchase applications and refinance activity have jumped, underscoring the benefits for both buyers and current owners," Sam Khater, chief economist at Freddie Mac, said in a statement on Thursday. "It’s clear that housing activity is improving and poised for a solid spring sales season.”
Moira Ritter is an award-winning staff writer for Homes.com, covering the California housing market with a passion for finding ways to connect real estate with readers' everyday lives. She earned recognition from the National Association of Real Estate Editors for her reporting on Hurricane Helene's aftermath in North Carolina.
This is a massing of the 6th & Lamar (Waterloo Records site) residential project based on the Planning Commission approved zoning. The original plans before a compromise was reached with the local neighborhood association called for a building 31' and two or three floors taller. TheATX1 (@The ATX) posted: This is a massing of the 6th & Lamar (Waterloo Records site) residential project based on the Planning Commission approved zoning. The original plans before a compromise was reached with the local neighborhood association called for a building 31' and two or three floors taller. https://x.com/theatx1/status/ 1944435039199985686?s=66
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