New York, Jan 26, 2026, 06:22 EST — Premarket
- U.S. mortgage rates barely moved early Monday, staying close to recent lows as bond traders awaited Fed signals.
- Borrowers are closely monitoring if rates will fall enough to spark refinancing and improve affordability.
- Mortgage-linked shares like Rocket continue to react sharply to shifts in long-term yields.
U.S. mortgage rates remained steady early Monday, staying just above 6% for many borrowers. Treasury yields dipped slightly as investors turned their focus to the Federal Reserve’s upcoming decision this week.
Timing is crucial. The housing market is squeezed by limited supply and stretched affordability, so even slight shifts in borrowing costs can impact who qualifies for loans and whether homeowners decide to refinance.
Lenders focus on rate movements. When the 30-year fixed rate drops, application volume usually climbs. But a quick spike in yields can slam the door shut just as fast.
Mortgage analytics firm Optimal Blue reported the average 30-year fixed-rate conforming mortgage at 6.103%, nearly flat from the last update but roughly 9 basis points higher than a week earlier. A basis point equals 0.01 percentage point. (Fortune)
Bankrate’s latest survey showed the average 30-year fixed mortgage rate at 6.20% on Monday. The annual percentage rate, or APR, which includes fees and other expenses, came in even higher. Refinance rates continued to sit well above those for purchase loans. (Bankrate)
Mortgage rates don’t follow the Fed’s policy rate exactly. Instead, they usually track longer-term yields, with the 10-year U.S. Treasury being key. MarketWatch reported it near 4.219% early Monday. (MarketWatch)
Policy moves are part of the story. President Donald Trump has ordered Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities — bonds made from bundles of home loans — aiming to lower borrowing costs. But economists doubt how much impact that will have given the tight supply. Joseph Brusuelas, chief economist at RSM US, dismissed the move as “an exercise in burning cash.” Patricia Zobel from Guggenheim Investments added, “It’s not clear” that consumers will see meaningful cost relief. (Reuters)
The Fed is widely expected to keep its benchmark rate steady at 3.50%-3.75%. Investors, though, are gearing up for potential volatility amid mounting political pressure on the central bank’s leadership. Tim Duy of SGH Macro Advisors noted, “Trump will need greater turnover” to fully control the Fed. Meanwhile, Michael Pearce from Oxford Economics called the “near-term outlook” benign. (Reuters)
Rocket Companies finished Friday at $21.07, slipping roughly 2% from Thursday. Meanwhile, UWM Holdings nudged up 0.35% to close at $5.81. Mortgage originators and housing-related stocks often serve as a barometer for future rate moves and loan volumes. (MarketWatch)
The risk is straightforward: a surge in yields triggered by hotter inflation numbers or a tougher Fed stance could push mortgage rates back toward the mid-6% range, cooling demand once more—particularly for refinancing.
Wednesday brings the next major event: the Fed’s rate decision at 2:00 p.m. ET, with Chair Jerome Powell’s press conference coming shortly after at 2:30 p.m. ET. These key moments could shift bond yields—and mortgage rate quotes—setting the tone for the week ahead. (Federalreserve)
