Mortgage Rates Drop to 3.5-Year Low, Offering Buyers a Timely Boost

                  rice softness is likely welcome news for buyers, and it comes on the heels of another market-friendly development for both buyers and sellers: a 3.5-year low in mortgage rates.

The Freddie Mac 30-year fixed rate slipped to 6.01% this week—it’s lowest level since September 2022—and it’s down from 6.85% just one year ago. That’s enough to boost purchasing power by roughly 9%, or $36,000 for a median-home buyer, a very helpful trend if it sticks around through the spring buying season.

Rents continue to soften nationwide. January marked the 29th straight month of year-over-year rent declines for 0- to 2-bedroom units, with the median asking rent across the 50 largest metros down 1.5% from a year ago, according to the Realtor.com® January 2026 Rental Report.

Improved rental construction has led to rising rental vacancy among the 50 largest markets, and 22 markets are seeing renter-friendly conditions. A similarly sized set of markets is in balanced territory, while just six markets are in landlord-friendly territory. 

While I was in Orlando for the International Builders’ Show earlier this week, the latest Realtor.com December new-construction data was released, reinforcing the idea that activity in the multifamily sector is increasing even as single-family construction has waned.