URGENT UPDATE: Mortgage rates in the United States have reached their lowest level since 2022, with the average 30-year fixed-rate mortgage dropping to 6.06% as of January 15, 2026. This significant decline has triggered an immediate surge in home purchases and mortgage refinancing, revitalizing a real estate market that had been cooling off.
The 30-year fixed-rate mortgage saw a steep decline from 7.04% a year ago, while the 15-year fixed rate also fell to 5.38%, its lowest since October 2024. This shift comes at a pivotal moment, empowering buyers and homeowners who had been grappling with elevated borrowing costs for months.
Following the rate drop, total mortgage application volume surged by 28.5% week-over-week, according to the Mortgage Bankers Association (MBA). Notably, refinancing applications skyrocketed by nearly 40%, as homeowners rushed to capitalize on the favorable conditions to lower their monthly payments.
The catalyst for this movement was a recent announcement by President Donald Trump, who revealed plans for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities aimed at reducing rates for consumers. This announcement coincided with the sharp drop in rates, briefly pushing the 30-year fixed rate below 6% before it edged slightly higher.
“Existing home sales in December rose at their fastest pace in three years, and mortgage rates have fallen to their lowest level in years,” stated Karoline Leavitt, White House Press Secretary. “As of last Friday, rates for the average 30-year mortgage were down more than a full percentage point, and we expect this downward trend to continue.”
With the average 30-year mortgage rate falling to 6.18% from 6.25% during the week for conforming loans up to $832,750, consumers are now faced with a unique opportunity to secure lower financing costs.
However, potential borrowers must act quickly. While the current rates are attractive, not everyone will qualify for the best deals. Factors such as credit scores play a crucial role; maintaining a strong credit history can significantly impact the rates available to consumers.
Experts recommend that homebuyers compare offers from different lenders, as even a 0.25 percentage-point difference can lead to substantial savings over the life of a mortgage. Additionally, increasing the down payment can improve approval chances and reduce monthly payments.
The urgency to act is palpable—this window of opportunity may not last long. Buyers who are prepared and ready to move quickly could secure significant savings on their homes, potentially lasting for decades.
Stay tuned for further updates as the market continues to react to these pivotal changes.
