New York, January 21, 2026, 06:55 (EST) — Premarket
U.S. mortgage rates nudged up Wednesday morning, with the average 30-year fixed-rate mortgage hitting 6.07%, according to NerdWallet data sourced from Zillow. The annual percentage rate, which factors in lender fees and other costs, rose roughly four basis points to 6.09% from Tuesday. 1
Timing is crucial. Rates hovered around 6%, and even slight shifts can alter monthly payments enough to tip the scale for buyers on the fence, particularly in the entry-level segment. Builders and lenders have leaned heavily on incentives to maintain momentum, yet the rate environment continues to dominate the mood.
On Tuesday, Mortgage News Daily’s daily index reported the top-tier 30-year fixed rate climbed 14 basis points to 6.21%, as bond markets softened. The 10-year Treasury yield hovered near 4.28%. “As always, there’s no way to know if today is a sign of additional momentum toward higher rates,” said MND’s Matthew Graham, highlighting geopolitical developments and upcoming U.S. data as key variables. 2
Treasury yields led the move, with the 10-year note climbing to about 4.29% on Tuesday—its highest level since August. Investors unloaded government bonds amid renewed trade jitters and a wider global selloff in bonds. Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, noted that investors worry the latest tariff chatter “could be the beginning of a further escalation in trade tensions.” Gennadiy Goldberg of TD Securities described the situation as “a perfect storm.” 3
Shares tied to housing slipped in premarket action. D.R. Horton dropped near 1.8%, Lennar slid around 2.9%, and the iShares U.S. Home Construction ETF lost roughly 2.3%. Mortgage lenders Rocket Companies and UWM Holdings both fell about 5%.
The sector remains focused on pushing through affordability challenges. D.R. Horton beat profit and revenue estimates for the quarter on Tuesday but cautioned that its home sales gross margin is expected to decline as it ramps up incentives. “We accelerated the use of those incentives throughout the quarter,” the company said during its earnings call. 4
The risk is obvious: should yields continue their ascent, lenders can swiftly adjust, pushing the 30-year fixed closer to the mid-6% range and putting demand under pressure once more. On the flip side, a calmer bond market or softer economic data would likely ease rates down.
Housing data takes center stage next. On Wednesday, the National Association of Realtors will publish its December Pending Home Sales Index, which tracks signed contracts instead of completed sales. 5
The next major event on the market’s calendar is the Federal Reserve’s policy meeting on January 27-28, with the rate decision and press conference set for January 28. Mortgage traders will be focused on any changes in the Fed’s language regarding the rate outlook and balance sheet, since that drives the Treasury market, which in turn influences mortgage rates. 6
