New York, Jan 20, 2026, 06:54 EST — Premarket
- Mortgage rates edged higher on Tuesday’s early rate sheets after the U.S. holiday on Monday.
- Markets react to fresh tariff updates as bond yields push higher and stock futures slip.
- Before the opening bell, homebuilder stocks, which react sharply to interest rate shifts, slipped lower.
U.S. mortgage rates edged higher Tuesday morning, with the average 30-year fixed-rate mortgage rising 17 basis points to 6.13% APR, according to NerdWallet, which referenced Zillow data. This marks a 19 basis point uptick from last week but remains 64 basis points lower than the rate a year ago. (A basis point is 0.01 percentage point.) 1
This shift matters as buyers and sellers weigh whether lower financing costs are sticking after a holiday-thinned stretch where rate sheets lagged behind the bond market. Even minor tweaks now can tip the monthly numbers and decide if a deal goes through or falls apart.
Volatility is the focus for both lenders and borrowers. Mortgage rates move fast whenever bond markets swing sharply, and Tuesday’s risk-off sentiment is keeping rate quotes unsettled.
The 10-year U.S. Treasury yield edged up to 4.265%, marking its highest point in four months. Wall Street reopened after Monday’s holiday, pressured by a global selloff triggered by President Donald Trump’s tariff warnings, according to a Reuters markets column. 2
U.S. stock futures slipped as tariff concerns and the Greenland dispute rattled markets, with S&P 500 e-minis down 1.61% in early trading. Russ Mould, investment director at AJ Bell, said investors are anxious for a de-escalation deal on Greenland. 3
Before the open, rate-sensitive housing stocks came under selling pressure. D.R. Horton (DHI) fell about 3.2% to $155.96. Lennar (LEN) lost nearly 3.0%, while PulteGroup (PHM) edged down around 2.0%.
D.R. Horton reported first-quarter net income of $594.8 million, or $2.03 per diluted share, according to a company release. The homebuilder also stuck to its full-year revenue guidance, aiming for between $33.5 billion and $35.0 billion. “Affordability constraints and cautious consumer sentiment continue to impact new home demand,” said executive chairman David Auld. 4
A Zillow-backed affordability forecast brought a hint of hope, though it stops short of a big shift. “This is what a small-wins year looks like for housing,” said Zillow senior economist Kara Ng. Zillow expects housing expenses to ease in more major metros this year. 5
There’s a catch. Mortgage quotes vary widely based on borrower credit, down payment, and fees. Lenders can quickly shift prices if Treasury yields climb or mortgage-backed securities decline. Should the bond market stabilize, rates could fall; but a fresh sell-off would likely send them up again.
Traders are focused on D.R. Horton’s 8:30 a.m. ET conference call, looking for clues on incentives and demand. This week is packed with U.S. data and policy updates that could shake yields again.
