While homebuyers should not expect a drastic reduction in mortgage rates in the near term, rates could continue to fall through 2026. Fannie Mae predicts that mortgage rates will start off 2026 at 6.2% and drop to 5.9% by the end of the year. On the other hand, the Mortgage Bankers Association sees mortgage rates holding steady at 6.4% this year.

The housing market faces dual pressure as fewer Americans apply for mortgages while lenders reduce loan programs and increase documentation requirements.

Mortgage rates tend to track longer-term Treasury yields, which respond to inflation data and growth outlooks. When inflation cools, borrowing costs can ease. When price pressures rise, lenders raise rates to protect returns. Expectations for Federal Reserve policy also matter, even though the Fed does not set mortgage rates directly.

Explore current mortgage rates and what they mean for homebuyers.

Mortgage applications decreased by 1.8% last week, with FHA refinance applications rising 12% due to favorable rates. Despite a decline in conventional and VA applications, FHA's strong performance highlights shifting trends in the mortgage market.

Freddie Mac’s latest Primary Mortgage Market Survey (PMMS) shows the average 30-year fixed-rate mortgage (FRM) fell to 6.15% this week.  “After sta

The move could save FHA borrowers about $181 on monthly payments, says BAC Co-founder and Chief Advocacy Officer Brendan McKay Introduced Sept. 19, 2025, by Reps. Gregory Meeks (D-N.Y.) and Pete Sessions (R-Texas), the Mortgage Insurance Freedom Act would ...

Mortgage rates for 30-year conforming loans have fallen to 6.33%, with jumbo and FHA loans also seeing declines. Fannie Mae forecasts rates to reach 5.9% by the end of 2026, while the Fed is expected to implement additional rate cuts in October and December.