Mortgage Interest Rates Today: Rates Rise to 6.11% After Trump Unveils His Fed Chair Pick

Mortgage rates ticked up Thursday but remained relatively stable, less than a week after President Donald Trump nominated Kevin Warsh to succeed Jerome Powell as head of the Federal Reserve.

The average rate on 30-year fixed home loans increased to 6.11% for the week ending Feb. 5, up from 6.10% the week before, according to Freddie Mac. For perspective, rates averaged 6.89% during the same period in 2025.

"For the last several weeks, the 30-year fixed-rate mortgage has remained at its lowest level in years,” said Sam Khater, Freddie Mac’s chief economist. "The combination of improving affordability and availability of homes to purchase is a positive sign for buyers and sellers heading into the spring home sales season."

Realtor.com® senior economist Anthony Smith says Warsh's nomination has refocused attention on the importance of the Fed's policy credibility and investor expectations. 

Warsh served as a Fed governor from 2006 to 2011, at the height of the global financial crisis and the Great Recession.

Even before announcing Warsh as his pick, Trump has made it clear that he wants a Fed chair who would drastically lower interest rates as part of his broader strategy to solve the housing crisis.  

Mortgage rates are not directly set by the Fed but instead reflect long-term yields, which respond to shifting economic signals, market sentiment, and perceived risks about inflation and future policy decisions.  

"If investors grow uncertain about the Fed’s intentions, or begin to question its independence, long-term yields can rise even during a rate-cutting cycle," warns Smith. "That paradox underscores the risk of mixing political objectives with monetary policy."

For housing, that means aggressive calls for rate cuts may not lower mortgage rates unless investor confidence in the Fed's commitment to combat inflation—part of its congressional mandate—remains intact. 

Affordability, however, is shaped by more than mortgage rates alone. Real wage growth—supported by low inflation—and a stable labor market also play a critical role. Together, these conditions give families the confidence to purchase their first home, move, or upgrade their living situation. 

"A Fed that is seen as credibly delivering on its dual mandate of price stability and maximum employment is the most durable path to better housing affordability over time," says Smith. 

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors 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 increase. 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.