The average interest rate on a 30-year fixed-rate mortgage reached 6.09% this week. This change reduced average monthly housing payments by 6% compared to 2025.
Mortgage rates are hovering near their lowest levels in three years, according to Freddie Mac’s latest Primary Mortgage Market Survey.
This week, the average interest rate on a 30-year fixed-rate mortgage reached 6.09%, and the average 15-year fixed-rate mortgage reached 5.44%. Both indicators have increased from the previous week. However, this is down from last year, when the average for 30-year fixed-rate mortgages was 6.96% and 6.16% for 15-year fixed-rate mortgages.
“More homebuyers are entering the market as the economy improves and the average price of a 30-year fixed-rate mortgage is almost 1 percent lower than last year,” the report said. “Using multiple quotes can save you thousands of dollars, so buyers should always shop around for the best rate.”
Redfin reported Thursday that mortgage purchase applications and new listings improved in the four weeks ended Jan. 18, as lower interest rates spurred some activity among homebuyers and home sellers. The number of mortgage purchase applications increased by 5% from the previous week, but the number of new properties decreased by the smallest amount since November (-1.6%).
Due to lower interest rates, the median monthly home payment in the U.S. fell 6.3% year over year to $2,441. Still, homebuyers are taking their time before closing, with the typical home taking 61 days on the market to close, a week more than last year. Redfin said the downturn was largely due to the market tilting in favor of buyers, who were now able to negotiate prices and other incentives.
“Buyers have much more power than they have in years past,” Redfin Premier agent Ben Ambroch said in a report. “Many buyers have high standards for their new home, giving up a 3% mortgage rate for a 6% rate.”
“The buyer is negotiating the price and is asking for repairs based on inspection,” he added. “Sellers are more willing to compromise because listings have been sitting on the market for too long. Sellers who need to move want to get a deal done.”
Email Marian McPherson
