Mortgage Rates

Holding Steady — Mortgage rates have remained relatively stable to start the year. As of January 29, the average 30-year fixed-rate mortgage was 6.10%, nearly unchanged from the prior week, but noticeably lower than this time last year when rates averaged 6.95%.

There’s been a lot of buzz around what the Federal Reserve (Fed) is doing with interest rates. It’s worth noting that mortgage rates don’t move one-for-one with Fed decisions. As of early 2026, the Fed has paused its series of rate cuts from 2025 and is holding rates steady, signaling a cautious, “wait and see” approach as economic conditions continue to evolve.

Freddie Mac Primary Mortgage Market Survey®. Rates based on 30-year fixed-rate mortgage.

Homes Prices

Negotiations is Sticking Around — While home prices remain elevated overall, buyers are continuing to see more negotiating power. That trend is carrying into early 2026 as homes spend more time on the market and competition cools slightly in many areas.

In 2025, nearly two-thirds of buyers paid less than the list price, and many secured significant discounts. With these trends continuing into the new year, well-prepared buyers may find opportunities to stretch their buying power further than they could just a few years ago.

Housing Supply

Inventory Still Up — Housing supply continues to slowly improve as more sellers bring homes to the market. New listings have begun to rise compared to late last year, and active inventory is continuing to climb.

At the same time, buyer demand has been slower to pick up, which means homes are spending more time on the market. This combination is creating more options for buyers and contributing to a more buyer-friendly environment heading into 2026.

Market Activity

Seasonal Slowdown — Market activity cooled toward the end of 2025 and into early 2026, with contract signings pulling back in December. This isn’t unusual for winter months, when holidays, travel, and weather naturally slow buyer activity.

Industry experts are watching closely to see whether this dip is temporary or part of a broader trend. For now, quieter market conditions are giving motivated buyers more breathing room, including more time to tour homes, make decisions, and negotiate favorable terms.