{"id":23193,"date":"2026-02-01T20:37:59","date_gmt":"2026-02-01T20:37:59","guid":{"rendered":"https:\/\/budgetadirect.com\/?p=23193"},"modified":"2026-02-01T20:38:01","modified_gmt":"2026-02-01T20:38:01","slug":"will-mortgage-rates-go-down-in-february","status":"publish","type":"post","link":"https:\/\/budgetadirect.com\/?p=23193","title":{"rendered":"Will Mortgage Rates Go Down In February?"},"content":{"rendered":"
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\n irina88w\/GettyImages; Illustration by Hunter Newton\/Bankrate\n <\/p>\n<\/p><\/div>\n

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Mortgage rates ended January at 6.18%, matching their lowest levels since 2022. But can rates keep falling? That seems unlikely, mortgage experts say.<\/p>\n

The Federal Reserve announced Jan. 28 that its benchmark interest rate would remain unchanged, reflecting a mostly healthy economy. While the central bank doesn\u2019t control mortgage rates directly, it does set the tone. Meanwhile, housing economists see little on the horizon that would push mortgage rates down.<\/p>\n

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Mortgage rates are unlikely to move meaningfully lower until long-term inflation expectations ease. The main wildcard remains government intervention, which could push rates artificially lower.<\/p>\n

\u2014 Stephen Kates<\/cite>
\n Financial Analyst, Bankrate<\/span>\n <\/p><\/blockquote>\n

As of Jan. 28, the average 30-year mortgage rate was 6.18%, according to Bankrate\u2019s weekly lender survey. That matched the lowest level since 2022.\u00a0<\/p>\n

\u201cThe Federal Reserve paused in January, as expected, and presented an encouraging picture of a stabilizing economic environment,\u201d says Stephen Kates, financial analyst at Bankrate.<\/p>\n

\u201cConcerns about inflation reaccelerating during the April tax-refund season are likely to keep the Fed on hold until the second quarter of 2026. Likewise, mortgage rates are unlikely to move meaningfully lower until long-term inflation expectations ease,\u201d he says. \u201cThe main wildcard remains direct and sustained government intervention, which could push rates artificially lower.\u201d<\/p>\n

Will mortgage interest rates keep going down?<\/h2>\n

Most housing economists say it\u2019s unlikely rates will fall much farther. Fannie Mae predicts rates will hover around 6% for the rest of 2026 and into 2027.<\/p>\n

\u201cWith the Fed on hold and Powell emphasizing the unemployment rate as the key signal, 30-year fixed mortgage rates are likely to remain pinned near 6.0% to 6.1%, unless upcoming labor data shows unemployment rising meaningfully \u2014 a shift that could support a bond rally and pull rates below 6%,\u201d says Jeff DerGurahian, chief investment officer and head economist at loanDepot.<\/p>\n

But mortgage rates are nothing if not volatile, and other factors could push them higher. <\/p>\n

\u201cMortgage rates could continue to move higher as we head into the spring homebuying season,\u201d says Lisa Sturtevant, chief economist at Bright MLS. \u201cThe Federal Reserve decided to hold the federal funds rate steady at their January meeting amidst relatively positive economic data. [But] political uncertainty, both domestically and internationally, is going to be an important factor in rate trajectory, leading to rate volatility and probably higher rates in the weeks ahead.\u201d<\/p>\n

Current mortgage rate trends<\/h2>\n

Higher mortgage rates have kept homeowners clinging to lower-cost loans, a trend known as the lock-in effect. Meanwhile, the median national home price clocked in at $405,400 in December, a record high for the month, according to the National Association of Realtors.<\/p>\n

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Bankrate\u2019s weekly mortgage rate averages differ slightly from the statistics reported by Freddie Mac, the government-sponsored enterprise that buys mortgages and packages them as securities. Bankrate\u2019s rates tend to be higher because they include origination points and other costs, while Freddie Mac removes those figures and reports them separately. However, both Bankrate and Freddie Mac report similar overall trends in mortgage rates.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n

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