Mortgage Interest Rates Today: Post-Holiday Rates Keep Steady at 6.16%—Near 2025 Lows

Mortgage rates inched higher Thursday but remained within a narrow range near their 2025 low reached in the final week of the year, as the 10-Year Treasury yield continued to retreat.

The average rate on 30-year fixed home loans rose to 6.16% for the week ending Jan. 8, up from 6.15% the week before, according to Freddie Mac. For perspective, rates averaged 6.93% during the same period in 2024.

"In the first full week of the new year, mortgage rates remained within a narrow range, hovering close to the 6% mark," said Sam Khater, Freddie Mac’s chief economist. "The combination of solid economic growth and lower rates has led to improving momentum in for-sale residential demand, with purchase applications up over 20% from a year ago."

Mortgage rates closely track Treasury yields. The end of 2025 saw the 10-year yield tick up before declining in January, but the shift was less dramatic than earlier swings.   

Traders appear to be taking a wait-and-see stance ahead of Friday's release of the December jobs report.

Realtor.com® chief economist Danielle Hale says that with mortgage rates starting 2026 much lower than the prior year, home shoppers have reasons to be optimistic.  

"Lower mortgage rates are particularly beneficial for first-time homebuyers who have navigated the challenge of elevated rents and high-home prices while trying to compete with investors for the limited number of entry-level options," she says. 

Even in a broadly challenging market, however, there are cities and neighborhoods with relatively more abundant for-sale choices and a strong local economy giving younger households the ability to buy a starter home. 

A recent Realtor.com report found that the best markets for first-time homebuyers are concentrated in the Northeast, Midwest, and South, with affordable Rochester, NY, at the forefront.

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends, like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to go up. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates to fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

How your credit score affects your mortgage

Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.

The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.

Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates.

Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. They want to make sure you're able to pay back the loan.