It appears that relief is on the horizon for prospective homebuyers as mortgage rates continue to decline. The average rate on a conventional mortgage in the U.S. has dropped to 6.06%, the lowest level in more than three years, according to Freddie Mac.
As of Jan. 15, 2026, the 30-year fixed-rate mortgage (FRM) averaged 6.06%, down from 7.04% the year before. The 15-year fixed-rate mortgage averaged 5.38%, down from last week’s 5.46%. It’s also down from 6.27% last year.
“The impacts are noticeable, as weekly purchase applications and refinance activity have jumped, underscoring the benefits for both buyers and current owners,” the lender said. “It appears that housing activity is improving and poised for a solid spring sales season.”
Homeownership Bleak For Americans Despite Drop In Mortgage Rates
While mortgage rates are dropping for
Americans, homeownership is another story as people grapple with affordability. A report from Attom found that median-priced homes are less affordable than usual in 99% of the 594 counties for which sufficient data were available, CBS News reports. The national average for home prices sits around $365,000, a record high.“Many Americans were priced out of buying a home in 2025, and affordability remains worse than historic norms in most markets,” Rob Barber, CEO of Attom, told CBS News.
Prospective homebuyers face an uphill battle as record-high prices continue to outpace wages and a severe housing shortage. According to the National Mortgage Professional, the typical household earns $83,853 per year, which is nearly 30% less than the $115,454 needed to afford the median-priced homes. This also renders potential buyers “cost burdened” by pushing them above the 30% threshold, with 41.3% of their earnings spent on housing costs.
Redfin Senior Economist Elijah de la Campa told the outlet that buyers need to spend 30% or less of their income on their monthly housing payment for a home to be considered “affordable” on the platform.
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