Mortgage interest rates have fallen to their lowest level in more than three years, with the average 30-year fixed mortgage rate hitting 6.06% as of mid-January 2026, down nearly a full point from last year, and almost 2 percentage points below the October 2023 peak.This decline comes after a government directive where former President Donald Trump ordered mortgage giants Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds, aiming to lower borrowing costs.
The move has spurred increased refinancing applications and purchase activity, signaling a housing market revival poised for a strong spring sales season, according to Freddie Mac Chief Economist Sam Khater.
Borrowers should act promptly to lock in rates through reliable lenders. For example, Rocket Mortgage is noted for a quick average refinance closing time of 21 days, with highly rated customer service, despite higher origination fees and lack of physical branches.
Understanding these dynamics and choosing from top mortgage providers can significantly impact monthly payments and total loan costs.
