While homebuyers should not expect a drastic reduction in mortgage rates in the near term, rates could continue to fall through 2026. Fannie Mae predicts that mortgage rates will start off 2026 at 6.2% and drop to 5.9% by the end of the year. On the other hand, the Mortgage Bankers Association sees mortgage rates holding steady at 6.4% this year.

The housing market faces dual pressure as fewer Americans apply for mortgages while lenders reduce loan programs and increase documentation requirements.

The median U.S. monthly housing payment fell to $2,365 during the four weeks ending January 4, down 4.7% from a year earlier and the lowest level since the start of 2024. That’s according to a new report from Redfin,

Redfin, a Seattle, Washington-based real estate giant, forecasts average 30-year fixed mortgage rates will remain in the low 6% range for most of 2026. "Mortgage rates will continue their slow slide but remain high relative to the pandemic era," Redfin said last month.

The average rate on a 30-year U.S. mortgage edged higher this week to just above its 2025 low. Mortgage buyer Freddie Mac said Thursday that the average long-term mortgage rate rose to 6.16%.

"Mortgage interest rates went down before the Fed cut rates in September but went up after," says Ali Wolf, chief economist at NewHomeSource. "This is because the Fed is cutting the federal funds rate, which is a short-term interest rate. Mortgage interest rates, on the other hand, are influenced by investors and the yield on the 10-year Treasury."

Mortgage rates remain steady near 6.4% as analysts predict a 14% increase in 2026 home sales and tighter mortgage spreads.

HUNDREDS of thousands of homeowners could save money by switching their mortgage deals early – without paying a fee. Three lenders are letting customers move onto cheaper deals up to four

Freddie Mac’s latest Primary Mortgage Market Survey (PMMS) shows the average 30-year fixed-rate mortgage (FRM) fell to 6.15% this week.  “After sta