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4d ago

U.S. Mortgage Rates Touch 14-Month Low as U.K. Lenders Eye Sub-3% Deals in 2026

Analysts expect U.S. borrowing costs to hover near current levels next year, with falling British inflation fueling forecasts of sharper cuts for prime borrowers.

An aerial view of residential homes on September 17, 2025, in Rancho Cucamonga, California.
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Overview

  • Freddie Mac’s survey shows the 30-year fixed average at 6.18%, a 14-month low and the first sub-6.2% reading since October 2024.
  • U.S. mortgage rates have mostly held between 6.2% and 6.3% since mid-September, a stability linked to mixed economic signals and recent data delays from the shutdown.
  • Major forecasts point to rates near current levels in 2026, with MBA at 6.0%–6.5%, Realtor.com and Redfin near 6.3%, and NAR and Fannie Mae closer to 6% by year-end.
  • Recent easing is tied to seasonality, lender competition and earlier Fed cuts, though mortgage pricing ultimately reflects Treasury yields and demand for mortgage-backed securities.
  • In Britain, faster-falling inflation and intensifying lender competition have brokers flagging potential sub-3% headline deals for prime, low-LTV borrowers in 2026, with about 1.9 million loans set to mature.