Mortgage rates have dropped significantly in recent months, reaching their lowest levels in over three years. As of the latest Freddie Mac Primary Mortgage Market Survey (for the week ending January 22, 2026), the average 30-year fixed-rate mortgage stands at 6.09%, up slightly from the prior week’s 6.06% but still nearly a full percentage point below the 6.96% seen a year ago. The 15-year fixed-rate mortgage averages 5.44%.
Other sources report similar or even lower figures in daily averages: Zillow shows 30-year fixed rates around 5.97% for purchases (with refinances slightly higher). This marks a notable improvement from the high-7% peaks of 2023–2024 and the higher levels throughout much of 2025.
Why Are Mortgage Rates Dropping?
Several economic factors are driving this decline:
- Cooling inflation and a stabilizing economy have reduced pressure on long-term rates.
- Expectations around Federal Reserve policy, including potential pauses or adjustments to interest rates, have influenced bond markets (which directly impact mortgage pricing).
- Improved economic signals have boosted buyer confidence without reigniting rapid inflation.
These conditions have pushed rates to their lowest point since late 2022, creating a more favorable borrowing environment after years of elevated costs.
What This Means For You
Lower rates translate to real savings and greater affordability:
- On a $300,000 loan, a drop from ~7% to ~6% can save hundreds of dollars per month in interest and principal payments, potentially adding tens of thousands in long-term savings.
- More buyers are entering (or re-entering) the market, which could increase competition in some areas—but it also means sellers may see more activity.
- Homes become more accessible for first-time buyers or those with moderate budgets, as monthly payments align better with incomes.
If you’ve been waiting on the sidelines due to high rates, this window could make now an ideal time to act—especially if inventory is improving in your local market (like in North Carolina areas such as Fuquay-Varina, Raleigh, Cary & Apex).
Opportunities for Refinancing
Homeowners with existing mortgages at higher rates (e.g., 7%+) stand to benefit the most:
- Refinancing to a rate in the low-6% or high-5% range can lower monthly payments significantly.
- Many who locked in during 2022–2024 are now considering “cash-out” refinances or rate-and-term refinances to tap equity or reduce costs.
- Break-even periods are shorter than in recent years, often achievable within a couple of years depending on closing costs. Closing costs can also be absorbed into the loan, lowering out-of-pocket cash at the closing table.
Is This the Bottom? And Should You Act Now?
While rates have improved dramatically, they’re not guaranteed to stay this low forever. Forecasts for 2026 suggest averages could hover in the mid-6% range or slightly higher, depending on inflation trends, Fed decisions, and economic growth. Some experts note that rates near 6% are already boosting demand, with rising home sales, applications, and new listings reported early in the year.
The key takeaway: This could be one of the best borrowing environments in recent memory. Delaying might mean missing out if rates stabilize or tick upward due to economic shifts.
Next Steps to Take Advantage of Low Rates
Rates won’t stay low indefinitely, so if buying or refinancing is on your radar, consult your Scout Advisors mortgage broker to help you secure the best possible terms. The housing market is responding positively to these improvements—don’t wait to see if it gets even better. Reach out today to discuss how these rates could work for your specific situation!
