Mortgage Rates News

 

Mortgage rates eased in for 2026, with the average 30-year fixed rate before now moving into low-6% range as inflation has somehow cooled and Treasury yields has decreased. The shift has increased refinance applications and brought back buyers into the market, though the affordability is still pressurized due to high home prices and limited supply.

Lenders are now becoming more competitive due to spreads narrowing and government-backed loan programs attracting first-time buyers. New construction in the South and Midwest is now increasing, supported by the builder incentives and rate buydowns.

Bond yields remain the main driver, and investors are expecting that the Federal Reserve will begin easing policy. Analysts say rates could continue its lower trend if inflation continued.

Most forecasts predict stabilization, though elevated home prices remain a barrier. Economists think that 2026 will be a transition period for the housing market after two years of volatility.