The final months of 2025 were turbulent for those of us following mortgage rates and the economy due to a prolonged government shutdown and uncertain comments from Federal Reserve leaders leading up to December’s vote on borrowing rates.
While it’s only the second week of 2026, things seem relatively stable. The average 30-year mortgage rate has hovered around 6% for the past seven weeks, with an average of 6.02% in the week ending Jan. 8, according to data from Zillow provided to BW.
The upcoming Federal Reserve meeting on Jan. 27-28 may not bring significant changes, as analysts predict that the central bankers will likely keep the overnight borrowing rate steady. This suggests that mortgage funding costs are expected to remain unchanged in the near future, potentially keeping mortgage rates stable.
Discover mortgage options today and begin your journey towards homeownership
Receive personalized rates by answering just a few questions to find your lender matches.
How will this news story impact mortgage rates?
The Federal Reserve is just one of the factors influencing mortgage rates. Here’s how some of the top news events from the past week could affect potential home buyers.
The December jobs report
The Bureau of Labor Statistics released the December jobs report, showing that the number of jobs added last month was below expectations. While the unemployment rate decreased slightly, it remains higher than the previous year.
This report is unlikely to have a significant impact on mortgage rates, supporting the expectation that the Fed will maintain the borrowing rate at the upcoming meeting.
U.S. involvement in Venezuela and Greenland
Recent announcements regarding U.S. involvement in Venezuela and Greenland have had minimal impact on 10-year treasury yields, which could influence mortgage rates based on economic growth expectations.
Trump’s housing affordability proposals
President Trump’s proposals to promote housing affordability, such as banning large institutional investors from buying single-family homes, could potentially impact homebuyers by reducing competition and offering more choices.
Additionally, Trump’s plan to have Fannie Mae and Freddie Mac purchase mortgage bonds aims to lower mortgage rates by increasing bond demand, though some concerns have been raised about its effectiveness and resemblance to past financial crises.