The benchmark 30-year fixed mortgage rate eased to 6.06% this week, down from 6.16% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 7.04%.The last time the average rate was lower was Sept. 15, 2022, when it was at 6.02%.Meanwhile, borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell this week, dropping to 5.38% from 5.46% last week. A year ago, that average rate was at 6.27%, Freddie Mac said. ...

Core Insights - Freddie Mac reported that the 30-year fixed-rate mortgage (FRM) averaged 6.06% as of January 15, 2026, marking a decrease from 6.16% the previous week and down from 7.04% a year ago [1][6] - The decline in mortgage rates has led to a significant increase in weekly purchase applications and refinance activity, indicating an improvement in housing activity and a positive outlook for the upcoming spring sales season [2] Mortgage Rate Trends - The 30-year FRM decreased to 6.06% from 6.16% week-over-week and from 7.04% year-over-year [6] - The 15-year FRM averaged 5.38%, down from 5.46% the previous week and from 6.27% a year ago [6] Freddie Mac's Mission - Freddie Mac aims to enhance liquidity, stability, and affordability in the housing market, having assisted millions of families in buying, renting, or maintaining their homes since its inception in 1970 [3]

Core Insights - The strategy of "marry the house, date the rate" suggests buying a home now and refinancing later when mortgage rates drop, but this may not be as effective as it seems [1] - Homeowners may require at least a 0.75% decrease in mortgage rates for refinancing to be financially beneficial [2][4] Mortgage Refinancing Analysis - A typical 30-year fixed mortgage example includes a $386,000 loan at a 6.8% interest rate with approximately $5,500 in closing costs [2] - Refinancing costs include application fees, appraisals, title insurance, and closing costs, which must be considered alongside rate reductions [3] Break-Even Analysis - For 30-year mortgage borrowers, a 0.25% rate drop results in a break-even period of 5.5 years, while 15-year mortgage borrowers break even in 3.3 years [4] - The geographical location affects the break-even timeline due to varying property taxes, insurance costs, and title fees across states [5] Rate Drop Impact - A 0.25% drop leaves borrowers over $2,000 underwater after three years, while a 0.50% drop allows for break-even just over three years [6] - A 0.75% drop leads to positive savings right before the three-year mark, and a 1.0% drop results in breaking even in less than two years with nearly $5,000 in savings after three years [6]