With the spring homebuying season approaching, lower mortgage rates are a welcome development for households looking to buy a home.
That’s the sentiment of some industry mortgage watchers as rates have hit recent record lows and applications for home purchases have seen solid increases over the past two weeks.
The latest Primary Mortgage Market Survey® (PMMS®), released by Freddie Mac Thursday, shows the 30-year fixed-rate mortgage (FRM) averaging 6.09%, a slight increase of 3 basis points from last week’s rate average of 6.06%, which was the lowest level seen in over three years.
“With the economy improving and the average 30-year fixed-rate mortgage nearly a percentage point lower than last year, more homebuyers are entering the market,” said Sam Khater, Freddie Mac’s chief economist. “Buyers always should shop around for the best rate, as multiple quotes can potentially save them thousands.”
While lower rates have been an encouraging sign for home shoppers, NAR Chief Economist Lawrence Yun cautioned that the housing sector “is not out of the woods yet,” as pending home sales decreased by 9.3% in December from the prior month and 3% year-over-year, according to the latest National Association of Realtors®’ (NAR) report released earlier this week.
Realtor.com Senior Economist Anthony Smith noted while mortgage rates reached their lowest level of the year in December, affordability remained strained. Inventory recovery continues to diverge by region, with the South and West seeing the most improvement, he noted.
But, he said, “Recent policy actions added to volatility. President Trump announced that Fannie Mae and Freddie Mac would purchase $200 billion in mortgage-backed securities, aimed at boosting market liquidity. The announcement contributed to the recent rate declines, although uncertainty around implementation may limit the impact.”
With Trump’s separate executive order outlining a framework to restrict institutional investor participation in housing markets, key enforcement details remain undefined and any near-term effects are likely to be limited and concentrated in select metros, Smith said in a statement.
“Looking ahead, affordability remains the central issue. Labor market stability and real wage gains will be needed to support housing demand, but a gradual and uneven recovery remains the likely path forward,” Smith added.
Still, the overall drop in rates is generally viewed as a good driver of mortgage activity in the short-term.
“The mortgage market is off to a strong start in 2026,” said MBA President and CEO Bob Broeksmit. Mortgage rates declining to levels not seen since September 2024 have boosted borrower demand, with both refinance and purchase applications up solidly on both a weekly and an annual basis. With the spring homebuying season approaching, lower mortgage rates would be a welcome development for households looking to buy a home.”
At-a-glance
- The 30-year FRM averaged 6.09% as of January 22, 2026, up from last week when it averaged 6.06%. A year ago at this time, the 30-year FRM averaged 6.96%.
- The 15-year FRM averaged 5.44%, up from last week when it averaged 5.38%. A year ago at this time, the 15-year FRM averaged 6.16%.
