In a positive sign for the first month of 2026, mortgage rates continued to improve this week, falling to the lowest level seen in over three years.
According to the latest Primary Mortgage Market Survey from Freddie Mac, the 30-year fixed rate mortgage (FRM) averaged 6.06%, down from last week’s average of 6.16% and from an average of 7.04% at the same time last year. In addition, the 15-year FRM averaged 5.38%, down from last week when it averaged 5.46% and from an average of 6.27% at the same time last year.
Sam Khater, Freddie Mac’s Chief Economist, said the impacts of the decrease are “noticeable,” as “weekly purchase applications and refinance activity have jumped, underscoring the benefits for both buyers and current owners.”
This was observed in yesterday’s Weekly Applications Survey from the Mortgage Banker’s Association, which reported a whopping 28.5% increase in mortgage applications this week.
“It’s clear that housing activity is improving and poised for a solid spring sales season,” he continued.
Realtor.com® Senior Economic Research Analyst Hannah Jones attributed the decrease to President Trump’s announcement of his instruction to Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities.
“The announcement triggered a sharp decline in mortgage rates as MBS prices surged, since higher MBS prices generally translate into lower borrowing costs for consumers,” she explained.
Jones continued that Realtor.com expects “mortgage rates to remain relatively steady in the low-6% range this year, which could support modestly improving home sales in 2026,” but adds that change would most likely be more gradual throughout the year.
