Mortgage Rates Climb but Stay Near Three-Year Lows - U.S. Housing Market

Mortgage rates increased in the week ending January 22, 2026, rising to 6.45% for a 30-year fixed-rate loan, according to Freddie Mac data, but remain at their lowest level since early 2023. The rise marks a continuation of recent volatility amid expectations of slower Federal Reserve rate cuts and persistent inflation pressures. The average 30-year fixed mortgage rate rose from 6.37% the previous week, while the 15-year fixed rate climbed to 5.89% from 5.82%. Despite the uptick, borrowing costs are still below levels seen in late 2022 and early 2023, when rates exceeded 7%. Home sales activity has remained subdued due to affordability constraints, though demand is holding steady as home prices stabilize. Analysts note that mortgage rates may remain elevated through mid-2026 unless inflation shows sharper declines. The Federal Reserve’s next policy meeting is scheduled for February 1, 2026.