Mortgage Rates Fall to Their Lowest Level Since 2024: Have Conditions Improved for Buying a Home?

• Mortgage rates in the US fall to lowest level since October 2024
• Why it matters: lower borrowing costs for homebuyers
• What’s next: more inventory, price adjustments, and economic caution

Mortgage rates in the United States posted another decline, reaching their lowest level since late 2024, opening a window of opportunity for some homebuyers.

Although the drop lowers financing costs, access to homeownership remains challenging—especially for those considering buying amid economic and job-market uncertainty.

January 2026 Mortgage Rates and the New Market Landscape

According to Freddie Mac, the average rate on a 30-year fixed mortgage fell this week to 6.15%, down from 6.18% the previous week.

This marks the lowest level since October 3, 2024, when rates touched 6.12% before rising again.

The avg. 30yr FRM decreases to 6.15% https://t.co/K9HBh1pgw5 pic.twitter.com/oQrxvyM32k

— Freddie Mac (@FreddieMac) December 31, 2025

One year ago, the average rate stood at 6.91%, highlighting a clear difference in financing costs for borrowers today.

For 15-year loans—often used for refinancing—the average rate dropped to 5.44%, down from 5.5% last week. By comparison, a year ago this type of mortgage averaged 6.13%.

What Factors Influence Mortgage Rates?

Mortgage rates are tied to multiple variables, including decisions by the Federal Reserve on monetary policy, market expectations around inflation, and investor behavior in the bond market.

In general, mortgage rates closely follow the yield on the 10-year U.S. Treasury note, which stood at 4.14% this week—slightly below last week’s level. This modest decline has contributed to the recent easing in mortgage rates.

Buying a First Home: Opportunity With Limits

Although current rates are more favorable than a year ago, buying a first home remains a challenge for many households. The primary barrier continues to be the upfront cash needed for a down payment—especially for buyers without sufficient savings, according to CBS News.

Data from Realtor.com shows that housing inventory has increased significantly since 2024. Many sellers have lowered their initial listing prices as homes take longer to sell.

Still, despite higher inventory and lower rates, affordability remains an obstacle—particularly in high-cost urban areas.

Why Homebuying Remains Difficult for Some Latino Families

For many Latino families, access to homeownership depends not only on mortgage rates, but also on job stability and monthly income.

Even with lower financing costs, economic and labor-market uncertainty is keeping many potential buyers on the sidelines.

While increased inventory and price adjustments may create opportunities, the decision to buy remains closely tied to the ability to save for a down payment and commit to long-term financial obligations.

What’s Next

Existing home sales rose in November compared with the previous month, but declined year over year for the first time since May.

Over the first 11 months of the year, sales were down 0.5% compared with the same period last year.

The US housing market will continue adjusting as mortgage rates, home prices, and economic expectations evolve—making mortgage rates in January 2026 a key factor to watch for prospective buyers.