Overview
- Freddie Mac’s survey shows the average 30-year fixed mortgage at 6.18%, the first reading below 6.2% since October 2024 and a 14-month low.
- U.S. rates have held in a tight 6.2%–6.3% band for months, and forecasts from the Mortgage Bankers Association and others point to similar levels through 2026.
- Economists cite slower home sales, seasonal effects, lender competition and earlier Fed rate cuts for recent declines, with mixed economic data and shutdown disruptions limiting bigger moves.
- U.K. brokers say competition could deliver headline offers below 3% for low loan-to-value, prime borrowers in 2026, though some caution that most borrowers will not see rates that low.
- Several U.K. lenders already price select low-LTV deals just above 3.5%, Moneyfacts puts typical two- and five-year fixes near 4.8%–4.9%, and roughly 1.9 million mortgages maturing next year will fuel a major refinancing wave, with some ultra-low offers tied to high fees.