economy

January 14, 2026

Will mortgage interest rates drop after the January Fed meeting?

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Will mortgage interest rates drop after the January Fed meeting?

TL;DR

  • Mortgage rates declined in late 2025 due to three Federal Reserve rate cuts, ending the year over a full percentage point lower than they started.
  • An interest rate drop after the January 28th Federal Reserve meeting is unlikely due to a low probability of a Fed rate cut and potential market stagnation.
  • There is no Federal Reserve meeting in February, meaning any potential rate cut would be delayed until March 18th.
  • Current average mortgage rates are below 6% for qualified borrowers (5.87% for 30-year, 5.25% for 15-year).
  • Buyers seeking rates closer to 5% should shop around, improve credit scores, and consider larger down payments.
  • Buyers should prepare to lock in a low rate when market conditions become favorable again.

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