economy

January 8, 2026

3 reasons mortgage rates could fall again soon

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3 reasons mortgage rates could fall again soon

TL;DR

  • Mortgage rates experienced significant declines in late 2025, reaching 3-year lows.
  • Current average rates for a 30-year mortgage in early 2026 are around 5.99%.
  • Three factors could lead to further mortgage rate decreases: a rise in the unemployment rate, a fall in the inflation rate, or additional Federal Reserve rate cuts.
  • Upcoming economic reports on unemployment (January 9) and inflation (January 13) will be key indicators.
  • The Federal Reserve's next meeting is on January 28, with current expectations for a rate cut being low but subject to change.
  • Mortgage rates can adjust even before Fed announcements, as lenders often price in future changes.
  • Borrowers are advised to monitor the mortgage rate climate daily for opportune moments to act.

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