Mortgage Rates Today, January 03: 2025 Low at 6.15% Lifts Buyer Hopes
Current mortgage rates started 2026 on a softer note after the 30-year fixed dropped to 6.15%, the 2025 low. The move tracks a cooler 10-year Treasury yield and slightly better November home sales. Buyers now see improved affordability, while refinance rates may draw more interest from 2023–2024 borrowers with 7% loans. We break down the savings, lock strategies, and what experts expect for 2026. Use this guide to plan your next steps with clear, simple numbers you can trust.
Why the 30-year fell to 6.15%
Mortgage pricing closely follows the 10-year Treasury yield, which eased in recent weeks on cooler inflation data and steady Fed signals. As yields dipped, lenders trimmed offers, pulling the 30-year mortgage rate to a 2025 low. That relief helps sentiment at the start of 2026. The spread between mortgages and Treasurys remains wide, but continued yield stability could push quotes a bit lower.
Freddie Mac data show the 30-year fixed at 6.15%, a new 2025 low, as late-year housing activity steadied and November sales improved. Lenders responded with slightly better pricing, lifting buyer interest and lock volumes. For a quick overview of the late-December move and buyer reaction, see this recap from Fox Business source.
Affordability math for buyers
At 6.15%, principal and interest on a $400,000, 30-year loan run about $2,437 per month. At 7.25%, the payment is roughly $2,729. That is a savings of about $292 per month, or $3,500 per year, excluding taxes and insurance. As current mortgage rates improve, more buyers can qualify, and monthly budgets stretch further toward closing costs or modest price increases.
Ask about 45–60 day rate locks and whether your lender offers a float-down if pricing improves before closing. Compare lender credits against paying points. One point equals 1% of the loan amount. If you expect to own the home for many years, paying points can lower lifetime interest costs when current mortgage rates are near multi-year averages.
Refinance rates and timing
Homeowners with loans near or above 7% could see meaningful savings if they move to the low-6% range. Current mortgage rates may not match 2020–2021 lows, but payment relief and faster principal reduction can still add up. Check your remaining term, loan size, and prepayment plans to see if a shorter 20-year or 15-year option fits your budget.
If refi closing costs are about 1.5% on a $400,000 loan ($6,000) and the new payment saves $292 per month, the breakeven is roughly 21 months. Aim for a FICO of 740 or higher, keep debt-to-income under 43%, and verify income and assets early. Shop at least three lenders on the same day to compare refinance rates and fees fairly.
What to expect in 2026
Many forecasters see 2026 averaging near the mid-6% range, around 6.3%, if inflation eases gradually and the Fed cuts rates at a measured pace. Experts interviewed by CBS News expect modest declines rather than a fast drop, keeping affordability sensitive to data surprises source. Buyers should plan using today’s band and treat bigger dips as a bonus.
Sticky inflation or a hot labor market could lift the 10-year Treasury yield and push quotes back up. Conversely, softer CPI prints and clear Fed guidance may narrow spreads and nudge offers lower. Watch monthly CPI, payrolls, and Treasury auctions. Build cushions into budgets, and keep preapproval updated as current mortgage rates shift week to week.
Final Thoughts
The drop in the 30-year mortgage rate to 6.15% improves affordability and brings more buyers back into the market. For shoppers, get preapproved, compare three quotes on the same day, and ask about float-down options. Price points, credits, and points should be weighed against your expected time in the home. For homeowners, run a refi breakeven and consider shorter terms if cash flow allows. Heading into 2026, plan around a mid-6% base case and track CPI, jobs data, and the 10-year Treasury yield. Use today’s window to lock a rate that fits your budget and timeline.
FAQs
Freddie Mac data show the 30-year fixed at 6.15%, the 2025 low, as we start 2026. Quotes vary by credit score, down payment, points, and lock period. Get same-day estimates from at least three lenders to compare annual percentage rate, fees, and any credits.
Yes, mortgage pricing tracks the 10-year Treasury yield over time. When the yield drops on softer inflation or growth data, lenders often improve offers. The spread between mortgages and Treasurys moves too, so quotes may change even if the yield is stable.
If your existing rate is near or above 7%, compare today’s refinance rates in the low-6% band. Run a breakeven: total closing costs divided by monthly savings. If payback is under two years and you plan to stay put, a refi can make sense.
Improve your credit score, lower your debt-to-income ratio, and increase your down payment. Ask for quotes with and without points, and check 30-, 45-, and 60-day locks. Shop three lenders on the same day to compare annual percentage rate, fees, and credits accurately.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
