U.S. mortgage rates continued their downward trend for the fourth consecutive week, with the national average 30-year fixed rate falling two basis points to 6.17%, now 55 basis points lower than a year ago, and the 15-year rate dropping three basis points to 5.41%. This decline is reportedly encouraging more homebuyers to enter the market. However, forecasts from Fannie Mae and the Mortgage Bankers Association suggest that 30-year rates are expected to remain at or above 6% through most of 2026, with some projections indicating a slight decrease to 5.9% by late 2026.
Mortgage rates have continued their downward trend for the fourth consecutive week, with the national average 30-year fixed rate decreasing by two basis points to 6.17%, marking a 55 basis point reduction year-over-year. The 15-year fixed rate also fell three basis points to 5.41%, over half a point lower than last October. This recent decline is reportedly encouraging increased homebuyer market participation, as noted by Freddie Mac’s chief economist. Despite the recent dip, current Zillow data indicates slightly higher rates, with the 30-year fixed at 6.29% and the 15-year fixed at 5.51%. Mortgage refinance rates are notably higher, with the 30-year fixed refinance rate at 6.41%, suggesting a less favorable environment for existing homeowners looking to reduce payments. Looking ahead, industry forecasts from Fannie Mae and the Mortgage Bankers Association (MBA) project that 30-year mortgage rates will largely remain at or above 6% through most of 2026. While Fannie Mae anticipates a slight decrease to 5.9% by Q4 2026, the MBA expects rates to hold at 6.4% through the end of 2025 and into 2026, indicating a sustained period of elevated borrowing costs.
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