As we kick off 2026, there’s encouraging news for people thinking about buying a home: mortgage rates have dropped to the lowest level of the past year. According to Freddie Mac’s latest data, the average rate on a 30-year fixed mortgage hit 6.15%, down from recent highs and lower than it was just a year ago.
Why This Matters to Homebuyers
Mortgage rates directly affect your monthly payment and overall buying power. Even a small dip, like the recent move into the low 6% range, can save you hundreds of dollars each month or open up the possibility of qualifying for more home than you thought possible.
These lower rates come after the Federal Reserve cut short-term interest rates several times in late 2024 and 2025, which trickles down to mortgage pricing through investor demand and long-term Treasury yields.
What Experts Are Saying About 2026
Most forecasts suggest mortgage rates will hover just above 6% through 2026, not necessarily plunging drastically, but remaining attractive compared to recent peaks above 7%.
That kind of stability could give buyers more confidence to plan their purchase instead of waiting for a big rate drop that might never come.
Tips for Buyers Right Now
Here are a few ways you can take advantage of today’s market conditions:
Get Pre-Approved Early
Knowing your qualifying range and lock-in option gives you a competitive edge when you find the right home.
Compare Multiple Lenders
Different lenders can quote slightly different rates. Shopping around could save you money.
Understand Loan Options
Fixed-rate mortgages offer predictability, but adjustable-rate mortgages (ARMs) may have lower initial rates if you plan to move or refinance later.
Improve Your Financial Profile
Small boosts in your credit score or a slightly larger down payment can meaningfully lower the interest rate you’re offered.
Still Thinking of Waiting? Here’s Why That Might Not Pay Off
While it’s natural to want “perfect timing,” experts caution against holding out for a major rate drop. Economic forces like inflation, global markets, and Federal Reserve policy make predicting mortgage rates an inexact science. Planning around your personal finances, not trying to time the market perfectly, is usually the smart move.
