Mortgage Rates Edge Up to 6.16%, but Mark Lowest Start to Year Since 2022

What happened to mortgage rates this week

It’s a new year, but the Freddie Mac 30-year fixed mortgage rate is little changed from its 2025 low, reached in the last week of the year. The typical rate edged up 1 basis point to 6.16% marking its lowest first-week of the year reading since 2022. The yield on the 10-Year Treasury Note ticked up at the end of 2025 before retreating back in January. Taking a step back, however, 10-year yields have changed very little in December relative to a bumpier ride earlier in the year, helping to keep mortgage rates stable at relatively low levels.

What it means for the housing market

Home shoppers are likely to have an optimistic outlook with mortgage rates at favorable levels.  Lower mortgage rates are particularly beneficial for first-time homebuyers who have navigated the challenge of still-elevated rents and high-home prices while trying to compete with investors for the limited number of entry-level options. Even in a broadly challenging market, however, real estate is local and the data show that while some housing markets mirror broad regional and national trends, others chart a different course. Buyers with flexibility can change locations to find better conditions. For example, some cities and neighborhoods have relatively more abundant choices and a strong local economy that gives younger-households a leg up when buying a first home. A recent Realtor.com report found that these best markets for first-time home buyers are concentrated in the Northeast, Midwest, and South.