The average rate for a 30-year fixed-rate mortgage has dropped to 6.06%, marking its lowest level in more than three years, according to the latest weekly survey data released by Freddie Mac on Thursday.
The decline represents a continued downward trend for borrowing costs, providing a potential boost to the housing market as the industry heads into the new year.
Sam Khater, Freddie Mac’s chief economist, noted that the drop in rates has had an immediate positive impact on market participation.
“Late last week, mortgage rates dropped, driving the weekly average down to its lowest level in more than three years,” Khater stated in a press release.
He emphasized that the shift in rates has already triggered a response from consumers: “The impacts are noticeable, as weekly purchase applications and refinance activity have jumped, underscoring the benefits for both buyers and current owners.”
The Freddie Mac economist added that housing activity is clearly improving and “poised for a solid spring sales season.”
Data from the Mortgage Bankers Association (MBA) corroborates Khater’s sentiments, quantifying the spike in mortgage applications.
In a statement provided to Scotsman Guide, MBA President and CEO Bob Broeksmit highlighted the immediate consumer reaction to the recent rate drop.
“The continued decline in mortgage rates fueled a sharp increase in borrower demand during the first week of 2026,” Broeksmit said. “Mortgage applications jumped nearly 30%, driven by a 40% surge in refinance activity. With mortgage rates much lower than a year ago and edging closer to 6%, MBA expects strong interest from homeowners seeking a refinance and would-be buyers stepping off the sidelines.”
According to the Freddie Mac survey results for the seven-day period ending Thursday, the 30-year fixed-rate mortgage averaged 6.06%, down 10 basis points from last week when it averaged 6.16%. The decline from a year ago was even steeper: 30-year mortgage rates averaged 7.04% during the same week in 2025.
Meanwhile, the 15-year fixed-rate mortgage rate dropped to 5.38%, down from last week’s average of 5.46%. That is also a substantial improvement from a year ago, when the 15-year rate averaged 6.27%.
