Mortgage Interest Rates Drop to Their Lowest Level Since 2022: What Buyers and Sellers Should Know
Mortgage rates just hit their lowest point in more than three years — and it’s turning heads across the housing market.
Following a new federal move aimed at improving housing affordability, mortgage rates dropped sharply, creating renewed momentum for both buyers and homeowners who’ve been waiting on the sidelines.
What’s Driving Rates Lower Right Now?
The average 30-year fixed mortgage rate recently fell to just over 6%, down from the mid-6% range the week before. For comparison, rates were hovering above 7% this time last year.
This dip follows a major announcement that government-backed mortgage agencies would purchase $200 billion in mortgage-backed securities (MBS). When demand for these securities increases, mortgage rates typically fall — which is exactly what happened.
Economists are already seeing the impact. Mortgage applications for both purchases and refinances jumped, signaling renewed confidence from buyers and homeowners alike.
Why This Matters for the Spring Market
The last time mortgage rates were in the low 6% range was back in late 2022. Since then, higher rates have created a “lock-in effect,” where homeowners with ultra-low rates hesitated to sell — limiting inventory and slowing the market.
Now, with rates easing:
Buyers are regaining purchasing power
More homeowners may feel comfortable making a move
Activity is expected to improve heading into the spring market
In fact, recent home sales data already shows increases both month-over-month and year-over-year as buyers respond to better affordability and slightly improved inventory.
Will Rates Stay This Low?
Experts expect mortgage rates to remain relatively stable in the low 6% range this year. While affordability challenges still exist, even modest rate improvements can make a meaningful difference for buyers — especially first-time buyers or those moving up.
That said, most analysts agree the market recovery will be gradual, not sudden, due to lingering affordability concerns and the large number of homeowners still holding very low-rate mortgages.
How Mortgage Rates Are Actually Determined
Mortgage rates don’t change randomly. They’re closely tied to the 10-year Treasury yield, which reflects broader economic conditions like inflation and employment trends.
On top of that, lenders factor in individual borrower details such as:
Credit score
Loan amount
Down payment
Property type
Loan term
Buyers with stronger financial profiles typically qualify for lower rates, while higher-risk borrowers may see higher pricing.
Bottom Line
Mortgage rates dropping into the low 6% range is a meaningful shift — and it could create real opportunities for buyers and sellers heading into the spring market.
If you’re thinking about buying, selling, or refinancing, understanding how today’s rates impact your situation is key. A strategy that worked last year may not be the best move now.
Source & Credit:
Adapted from reporting by Realtor.com®
Original article: “Mortgage Interest Rates Today: Rates Plunge to Lowest Level Since 2022”
https://www.realtor.com/news/trends/mortgage-interest-rates-now-january-15-2026/
