Mortgage Rates Hit Lowest Level in Over a Year
As of January 13, 2026, mortgage rates finally moved in a meaningful direction for buyers.
According to national lock data, the average 30 year fixed conventional rate is now 6.037%, the lowest level we have seen since September 2024. That is roughly a 10 basis point improvement from both last week and last month. It is not dramatic, but it is real.
Here is where rates currently stand nationally:
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30 year conventional: 6.037%
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30 year jumbo: 6.373%
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30 year FHA: 5.942%
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30 year VA: 5.631%
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30 year USDA: 5.873%
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15 year conventional: 5.348%
These numbers are based on loans actually locked, not teaser quotes, and reflect data reviewed January 12 using locks through January 9.
What This Actually Means for Buyers
Rates spent most of the past year stubbornly hovering near or above 7%. Many buyers sat on the sidelines waiting for relief that never came. This move below 6.1% matters because it improves affordability without requiring a major market correction.
Monthly payments come down. Buying power increases. Seller concessions and rate buydowns become more effective instead of just damage control.
This is not a return to pandemic era rates, and anyone waiting for 3% again is wasting time. Those conditions were created by extraordinary government intervention and are not coming back under normal economic circumstances.
Why Rates Are Finally Easing
Mortgage rates do not move in a straight line with the Fed, but recent shifts matter.
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The Federal Reserve cut rates twice in late 2025.
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Quantitative tightening officially ended in December 2025.
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Bond markets have stabilized after months of volatility.
That combination has finally taken some pressure off mortgage backed securities, which is where mortgage rates are actually priced.
Context Matters
Historically, rates in the 6% to 7% range are normal. They only feel high because the last decade was artificially cheap money. From the 1970s through the 1990s, buyers routinely dealt with much higher rates, including peaks above 18% in the early 1980s.
The real challenge today is not rates alone. It is rates combined with limited housing supply and homeowners locked into ultra low mortgages who do not want to move.
What Smart Buyers Are Doing Right Now
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Getting fully pre approved, not pre qualified
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Comparing loan structures, not just headline rates
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Using seller credits strategically instead of overbidding
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Evaluating FHA, VA, and conventional side by side
This is a market that rewards preparation and flexibility. Rate dips like this do not last forever, and they rarely come with headlines announcing a perfect time to buy.
If you want to understand how these rate changes affect your buying power, your monthly payment, or your refinance options, the math matters more than the headlines.
Jeff Haynes, NMLS # 2719534
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