Mortgage Interest Rates Forecast

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Updated · 1 min read
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Written by Holden Lewis
Senior Writer/Spokesperson
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Edited by Johanna Arnone
Assigning Editor

Mortgage rates this week

Mortgage rates fell slightly the week ending Jan. 9, but this barely put a dent in the upward movement we saw over the holidays.

  • The 30-year fixed-rate mortgage averaged 6.93% APR, down four basis points from the previous week's average, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point.

  • The 15-year fixed-rate mortgage averaged 6.18% APR, down 11 basis points from the previous week's average.

  • The 5-year adjustable-rate mortgage averaged 7.34% APR, down six basis points from the previous week's average.

Mortgage interest rates have mainly been on an upward trajectory since the Federal Reserve's latest rate cut on Dec. 18. This week's slight reprieve still leaves the average 30-year fixed rate at nearly 7%, and many lenders are publishing sample rates that are higher. Since this is a slow time of year for the housing market, many would-be buyers are likely less concerned with what mortgage rates are doing now and more curious about where they'll be come spring. With the level of uncertainty surrounding the change in administrations, it's a tough call — but keep reading to see our January predictions.

Mortgage loans from our partners

NBKC - PURCHASE logo
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on NBKC

NBKC

4.5

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NBKC - PURCHASE logo

4.5

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620

Min. down payment 
3%

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on NBKC

New American Funding - PURCHASE logo
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on New American Funding

New American Funding

4.5

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New American Funding - PURCHASE logo

4.5

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500

Min. down payment 
3.5%

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on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating 
GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Mortgage loans from our partners

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating 
GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Rocket Mortgage - PURCHASE logo
Check Rate

on Rocket Mortgage

Rocket Mortgage

4.5

NerdWallet rating 
Rocket Mortgage - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
580

Min. down payment 
3.5%

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on Rocket Mortgage

Veterans United - PURCHASE logo
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on Veterans United

Veterans United

5.0

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Veterans United - PURCHASE logo

5.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
0%

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on Veterans United

January mortgage rate forecast

Mortgage rates might ride up and down in January and finish lower than where they started.

In December, the Federal Reserve hinted that it will cut short-term rates just half a percentage point throughout 2025, surprising investors who previously had expected larger cuts. The Fed's revised projections led to a jump in mortgage rates. When mortgage rates climb rapidly in response to the unexpected, they sometimes overdo it before falling back down.

January's change in presidential administrations dials up the uncertainty; mortgage rates tend to be more volatile in uncertain times.

Fannie Mae has a discouraging note for home buyers who yearn for yesteryear's rates: "We forecast the average mortgage rate to remain above 6 percent in 2025," the company said in a statement.

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