30-Year Fixed Mortgage Rate Falls to 6.01%
The average 30-year fixed-rate mortgage in the U.S. has fallen to 6.01%, according to the latest Primary Mortgage Market Survey from Freddie Mac. The continued decline in borrowing costs could provide some relief to the housing market. This marks another low for the key mortgage rate in the current cycle.
- The current average rate is a notable decrease from the 6.85% recorded one year ago and is significantly lower than the recent peak of 7.79% in October 2023. - For historical context, the all-time high for the 30-year fixed-rate mortgage was 18.63% in October 1981, while the record low was 2.65% in January 2021. - This rate environment is influenced by the Federal Reserve, which held its benchmark federal funds rate steady in a 3.5% to 3.75% range at its January 2026 meeting after implementing three rate cuts in 2025. - Housing inventory has been increasing, with active listings up 10% year-over-year in January 2026, marking 27 consecutive months of inventory gains. - The moderation in rates coincides with a significant cooling in home price growth, which slowed to just 0.9% annually in December 2025, indicating a market rebalancing. - Affordability is showing gradual improvement; a mortgage on a median-priced home now consumes 32.6% of the median household income, an improvement from the recent peak of unaffordability. - Despite the more favorable rates, homes are staying on the market longer, with the median time on market at 71 days, six days longer than the same period last year. - Looking ahead, major housing forecasts from entities like Fannie Mae and the Mortgage Bankers Association project that rates will likely remain in the 6.0% to 6.3% range for the rest of 2026.
