Mortgage Interest Rates Today: Rates Tick Up to 6.10% After Fed Hits Pause on Cuts

Mortgage rates edged up Thursday, a day after Federal Reserve policymakers opted to hold interest rates steady, despite persistent pressure from President Donald Trump for additional cuts. 

The average rate on 30-year fixed home loans rose to 6.10% for the week ending Jan. 29, up from 6.09% the week before, according to Freddie Mac. For perspective, rates averaged 6.95% during the same period in 2024.

"Mortgage rates remain near their lowest levels in three years, which is encouraging for potential homebuyers who have waited to enter the market for some time," said Sam Khater, Freddie Mac’s chief economist.

“Lower rates, combined with strong income growth, have led to a steady increase in purchase applications compared to last year. We’re also seeing more homeowners refinancing their mortgages to benefit from these lower rates, as shown by the rise in refinance applications over the past year."

While the federal fund rate does not directly set borrowing costs, the central bank’s stance informs bond markets, particularly the 10-year Treasury yield, which mortgage rates closely track. 

Realtor.com®  economist Jiayi Xu says the Federal Open Market Committee’s 10-2 vote to keep the benchmark overnight rate unchanged in its current range of 3.5% to 3.75% "reinforces the view that policymakers remain cautious and data-dependent, waiting for clearer evidence that inflation is sustainably moving toward target before easing policy."  

The Federal Reserve's congressional dual mandate is to use monetary policy to maintain price stability and promote maximum employment.  

Meanwhile, January consumer confidence plunged to its lowest level in more than a decade, reflecting growing concerns about the job market and the broader economy—conditions that could dampen housing demand. 

"Adding to the uncertainty, ongoing geopolitical tensions are contributing to volatility in Treasury yields, making it more likely that mortgage rates remain choppy rather than move decisively lower in the near term," says Xu. 

Despite the 30-year mortgage rate easing into the low-6% range, borrowing costs remain high enough to strain affordability and keep many would-be home sellers on the sidelines, limiting new listings.

Recent outstanding mortgage data show that loans with rates above 6% now surpass those below 3%, signaling that some buyers and sellers are moving forward despite higher financing costs. 

"Taken together, these signals point to a market that is gradually adjusting to higher rates," says Xu. "While slightly better rates have supported modest increases in sales and helped temper affordability pressures, the recovery is expected to be slow and uneven until rates move significantly lower and inventory expands further." 

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.