Overview
- Zillow pegged the average 30-year mortgage at 5.99% on January 6, with other trackers showing roughly 6.2% to 6.4% as rate movements stayed narrow.
- Mortgage application volume fell 9.7% in the two weeks ending January 2, and refinance applications dropped 14%, even as the average conforming rate eased to 6.25%, MBA data show.
- Analysts say lower spreads to the 10-year Treasury have helped contain pricing, supported by increased GSE purchases of mortgage-backed securities highlighted by KBW.
- Odds of a Federal Reserve rate cut at the late-January meeting remain low, with upcoming labor and inflation reports seen as potential catalysts for modest rate shifts.
- In the UK, about 69,000 borrowers rolling off five-year pandemic-era fixes face typical remortgage rates near 4.9%, adding roughly £321 a month on a £200,000 loan.