The national average for a 30-year fixed mortgage rate remains steady at 6.11%, as reported by Freddie Mac. Despite this consistency, the Federal Reserve has decided not to lower the federal funds rate during its January meeting and is unlikely to make any cuts for several months, raising questions about mortgage rates in 2026.
Currently, mortgage rates are experiencing a slight decrease overall, with figures near their lowest levels seen in more than three years. On February 5, the average 30-year fixed-rate mortgage was reported at 6.11%, only one basis point higher than the previous week but significantly 78 basis points lower than the same time last year. In February 2025, the average mortgage rate stood at 6.89%. The 15-year fixed mortgage rate this week is reported at 5.50%, also reflecting a modest increase of one basis point over the prior week and a reduction of 55 basis points compared to last year.
A closer look at Freddie Mac data over the past year reveals that 30-year fixed-rate mortgages fluctuated between 6.06% and 6.89%, while 15-year mortgages ranged from 5.38% to 6.09%. Presently, both mortgage types are hovering near their 52-week lows.
The political landscape has changed since early 2026, with President Trump’s recent proposals aimed at unfreezing mortgage rates from above 6%. He is advocating for Fannie Mae and Freddie Mac to invest billions in mortgage bonds, which could potentially narrow the spread between mortgage rates and 10-year Treasury yields. Economist Jake Krimmel from Realtor.com noted that while this could result in a slight drop in rates, significant movement would require large and reliable asset purchases.
The Federal Reserve, which cut the federal funds rate three times in 2025, held steady during its first meeting of 2026 and indicated it may only reduce rates once in the year. Consequently, as the federal funds rate directly influences shorter-term lending, mortgage rates are expected to mirror these trends.
As of early February 2026, the 10-year Treasury yield stood at 4.25%, down from 4.46% a year earlier. Mortgage lenders typically add a spread to this yield, covering loan costs and associated risks. Currently, the spread stands at 1.86%, smaller than the 2.43 percentage points calculated a year ago, contributing to lower mortgage rates now.
For potential homebuyers, the recommendation is not to wait for mortgage rates to dip below 6%. Home prices, greatly influenced by supply and demand dynamics, remain high, especially in markets attractive to first-time buyers. Historical data indicates that the median sale price for single-family homes has seen a steady increase from $208,400 in 2009 to $410,800 by mid-2025.
Experts suggest that if both interest rates and home prices were to decrease, it would provide better opportunities for buyers. While mortgage rates are slightly decreasing, some areas are experiencing stagnant or declining prices, offering potential relief for buyers.
When navigating the current market, homebuyers may consider purchasing properties within their financial reach. This could mean opting for smaller homes, condominiums, or fixer-uppers. Exploring neighborhoods outside major urban centers can also reveal more affordable housing options. Investing in a property, even one needing some work, can position buyers to start building equity.
In today’s environment, leveraging various financial strategies can help ease the burden of higher rates. For example, exploring rate buydowns—where buyers pay upfront for a reduced interest rate—can create a more manageable payment structure.
As the market evolves, it remains essential for buyers to stay informed and explore diverse opportunities that align with their financial goals while being mindful of the prevailing conditions in both mortgage rates and housing prices.