Norada Real Estate Investments

Mortgage Rates Today, Jan 11: 30-Year Refinance Rate Drops by 5 Basis Points

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Here's an update for anyone considering a home loan refinance! As of today, January 11th, the national average for a 30-year fixed refinance rate has dipped by 5 basis points, now sitting at 6.57%. This small shift, while seemingly minor, can have a noticeable impact on your monthly payments and overall savings over the life of your loan.

Mortgage Rates Today, Jan 11: 30-Year Refinance Rate Drops by 5 Basis Points

Key Takeaway:

  • Today's Rates: On January 11th, the national average 30-year fixed refinance rate is 6.57%, a 5 basis point decrease.
  • Policy Impact: A recent government policy of purchasing mortgage bonds has significantly influenced rates, causing a sharp drop earlier in the week.
  • Refinance Activity is High: The market is seeing a substantial increase in refinance applications, driven by declining rates.
  • Mixed Signals: While 30-year fixed refinance rates are down slightly, 15-year fixed rates have moved up.
  • 2026 Outlook: Experts predict rates will likely remain above 6% for most of 2026, with forecasts ranging from 5.9% to 6.4% by year-end.
  • Refinance Readiness: To qualify for a refinance, focus on maintaining a strong credit score, adequate home equity, a manageable DTI, and stable income.

What Does a 5 Basis Point Drop Really Mean for You?

Let's break down what a 5 basis point (bps) drop actually translates to in your wallet. A basis point is simply 0.01% of a percentage. So, a 5 bps drop means the rate went down by 0.05%.

Consider this: If you were looking to refinance a mortgage of, say, $300,000, this 0.05% difference can save you money. While the exact savings depend on the remaining term of your loan and how many years you have left, over a 30-year term, this small reduction can add up to a significant amount. For many homeowners, this could mean saving a few dollars each month, which, when compounded over time, becomes quite substantial. It's not a life-changing drop, but it's a positive move in the right direction, and when rates are hovering around these levels, every little bit counts.

Today's Mortgage Rate Snapshot (January 11, 2026):

Here’s a quick look at the national averages, according to Zillow:

Loan Type Current Average Rate (Jan 11) Change from Previous Week
30-Year Fixed Refinance 6.57% Down 5 basis points
15-Year Fixed Refinance 5.59% Up 14 basis points
5-Year ARM Refinance 7.28% Down 2 basis points

It's interesting to see that while the 30-year fixed refinance rate is inching down, the 15-year fixed rate has actually moved up. This suggests that borrowers looking for shorter terms might be facing slightly less favorable conditions today, while those opting for the longer, more traditional 30-year route are seeing a modest benefit. The ARM rate also saw a slight dip, but ARMs can be trickier for long-term planning due to their varying interest rates.

Market News & Key Trends: Why Are Rates Moving?

The mortgage rate market isn't a vacuum; it's influenced by a complex interplay of economic signals, government policies, and investor sentiment. Let's explore some of the key drivers behind the current rate movements:

  • The “Trump Policy Effect”: A significant event that has shaped the recent rate landscape was President Trump's executive order on January 9, 2026. His directive to purchase $200 billion in mortgage bonds was a bold move aimed at directly reducing housing costs. The immediate impact was palpable, causing the 30-year fixed average to plunge from 6.21% to an impressive 5.99% in a single day. This policy intervention injected a considerable amount of liquidity and confidence into the mortgage market, pushing rates down sharply. It’s a clear example of how government action can directly influence borrowing costs.
  • Refinance Surge: This policy-driven rate decrease has clearly energized homeowners. The Mortgage Bankers Association (MBA) has reported that the Refinance Index has surged by a remarkable 108% compared to this time last year. This indicates a significant uptick in homeowners looking to capitalize on lower rates, especially those who may have secured their current mortgages at higher rates in previous years. It's a classic case of supply and demand: as rates fall, more people refinance.
  • The Federal Reserve's Balancing Act: While the Federal Reserve did make three rate cuts in 2025, including one in December, it's crucial to understand that mortgage rates don't always mirror the Fed's actions perfectly. Mortgage rates are more closely tied to the bond market, particularly long-term Treasury yields. Factors like inflation expectations and the overall demand for these bonds play a much larger role. The Fed's actions set a tone, but the actual cost of borrowing for a mortgage is determined by a different set of forces.
  • Economic Indicators Showing a Slowdown: The labor market, a key indicator of economic health, has been showing signs of cooling. With unemployment recently rising to 4.6% in November 2025, this provides further downward pressure on interest rates. A softer labor market often signals to investors that the economy might be slowing, which can lead to lower inflation expectations and, consequently, lower bond yields and mortgage rates.

Looking Ahead: 2026 Mortgage Rate Forecast

This is where things get interesting, and frankly, a bit uncertain. Predicting mortgage rates is never an exact science, but experts offer some insights:

  • Fannie Mae's Crystal Ball: Fannie Mae, a major player in the housing finance system, forecasts that the 30-year fixed rate will likely stabilize around 5.9% by the end of 2026. This suggests a continued period of relatively stable, albeit not historically low, rates.
  • MBA's More Cautious Outlook: The Mortgage Bankers Association (MBA) takes a more conservative stance, projecting rates to remain near 6.4% through the course of 2026. This difference in forecasts highlights the inherent uncertainty in economic predictions.
  • Expert Consensus: The general agreement among many experts is that we can expect rates to remain above 6% for much of the year. The caveat to this is a significant economic shock or a pronounced recession, which could potentially drive rates lower, but no one is hoping for that!

My own take, based on years of watching these trends, is that while the policy-driven drop we saw earlier in January was significant, sustained sub-6% rates will depend heavily on inflation continuing its downward trajectory and the Fed signaling further rate cuts. We're in a period of adjustment, and while today's 5 bps drop is welcome, it's more of a ripple than a tidal wave.

Are You Considering a Refinance? Here’s What You Need:

Before you jump into a refinance, it's essential to understand the general requirements to ensure you likely qualify for a good rate. Lenders look for a few key things to be comfortable lending you money:

General Requirements for Refinancing:

  • Credit Score: This is often the most critical factor. Most lenders want to see a minimum credit score of 620 for a conventional refinance. However, to get the best interest rates, you'll generally need a score of 740 or higher. Government-backed loans like FHA and VA sometimes have more lenient credit score requirements.
  • Home Equity/LTV: Lenders want to see you have a stake in your home. For a conventional refinance, having at least 20% equity (meaning your loan is for 80% or less of your home's value, an 80% LTV) is usually required to avoid paying Private Mortgage Insurance (PMI). Some government loans offer more flexibility.
  • Debt-to-Income (DTI) Ratio: This is your total monthly debt payments divided by your gross monthly income. Lenders typically prefer this to be 43% or less. However, some might go up to 50% or even higher if you have other strong compensating factors, like an excellent credit score or substantial cash savings.
  • Payment History: A consistent history of making your mortgage payments on time is crucial. Most lenders will want to see no missed payments in the last 6 to 12 months.
  • Stable Income/Employment: Lenders need to be confident you can continue to make your payments. They'll usually ask for proof of a reliable and stable income, typically verifying employment and income for the past two years.

The mortgage market is always in motion, and while today’s small drop is a positive sign for potential refinancers, it’s wise to stay informed and grounded in your financial planning.

🏡 2 Beautiful Properties Available for Investors

Port Charlotte, FL
🏠 Property: Dorion St
🛏️ Beds/Baths: 4 Bed • 4 Bath • 2086 sqft
💰 Price: $412,400 | Rent: $3,190
📊 Cap Rate: 6.2% | NOI: $2,124
📅 Year Built: 2023
📐 Price/Sq Ft: $198
🏙️ Neighborhood: A+

and

Kansas City, MO
🏠 Property: E 110th Terrace
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1002 sqft
💰 Price: $220,000 | Rent: $1,700
📊 Cap Rate: 6.9% | NOI: $1,273
📅 Year Built: 1957
📐 Price/Sq Ft: $220
🏙️ Neighborhood: A-

Florida’s modern build with strong cash flow vs Missouri’s affordable rental with higher cap rate. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

View All Properties 

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30-Year Fixed Mortgage Rate Drops Sharply by 77 Basis Points to 6.16%

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The cost of borrowing has eased meaningfully over the past year. The average 30-year fixed mortgage rate is now 77 basis points lower than a year ago, settling at 6.16% as of January 8, 2026, according to Freddie Mac’s latest Primary Mortgage Market Survey®. While rates remain well above pandemic-era lows, the pullback marks a notable shift that is already improving affordability for buyers on the sidelines.

A year-over-year decline of this size is more than routine market noise. For many households, it translates into lower monthly payments and renewed flexibility when budgeting for a home purchase. As a result, the drop is beginning to stir activity across the housing market, particularly among buyers who had been priced out when rates were closer to last year’s highs.

30-Year Fixed Mortgage Rate Drops by 77 Basis Points Since Last Year

30-Year Fixed Mortgage Rate Drops by 77 Basis Points
Source: Freddie Mac

What Does a 77 Basis Point Drop Really Mean?

Let’s break this down. A basis point is essentially one-hundredth of a percentage point. So, a 77 basis point drop means rates have fallen by 0.77%. While that might sound small on paper, when you’re talking about mortgage loans, which are typically for hundreds of thousands of dollars and paid back over decades, it makes a huge difference.

Think about it this way: imagine you’re buying a $300,000 home.

  • A year ago, when rates were around 6.93%, your monthly principal and interest payment (not including taxes and insurance) would have been roughly $1,970.
  • Today, with rates at 6.16%, that same payment drops to about $1,833.

That’s a monthly savings of nearly $137. Over the life of a 30-year loan, that adds up to over $49,000! That’s a significant amount of money that can go towards home improvements, saving for retirement, or simply easing your overall budget. It’s these kinds of tangible benefits that I always emphasize when discussing mortgage rate movements with my clients.

A Closer Look at the Numbers: The Freddie Mac Survey

Freddie Mac’s survey is a key indicator of mortgage rate trends, and their latest report paints a clear picture.

Table: U.S. Weekly Average Mortgage Rates (as of 01/08/2026)

Mortgage Type Current Average (01/08/2026) 1-Week Change 1-Year Change 52-Week Average
30-Year Fixed FRM 6.16% +0.01% -0.77% 6.57%
15-Year Fixed FRM 5.46% +0.02% -0.68% 5.76%

As you can see, both the 30-year fixed and 15-year fixed mortgage rates have seen substantial decreases compared to this time last year. The 30-year fixed rate's 77 basis point drop is particularly noteworthy, as it’s the go-to choice for many homebuyers looking for stability and predictable monthly payments. The 15-year fixed rate has also fallen by 68 basis points, offering an even lower rate for those who can manage higher monthly payments in exchange for paying off their home faster and saving more on interest overall.

Why Are Rates Dropping? Unpacking the Factors

Several forces are at play behind this encouraging decline.

  • Slower Inflation: While not explicitly stated in the provided data, general economic trends suggest a cooling of inflation. When inflation is under control, it removes pressure on the Federal Reserve to raise interest rates, and can even lead to rate cuts. This is a crucial factor I’m always monitoring.
  • Economic Growth: The Freddie Mac report mentions “solid economic growth.” This might seem counterintuitive, as strong economies sometimes lead to higher rates. However, in this context, it likely means the economy is growing without overheating, which is the ideal scenario the Fed aims for. It signals stability rather than a need for aggressive rate hikes.
  • Market Expectations: Mortgage rates are heavily influenced by the bond market, particularly the yield on 10-year Treasury notes. When investors anticipate lower inflation or a slowing economy, they tend to buy more bonds, driving yields down, which in turn pulls mortgage rates lower.
  • Federal Reserve Policy (Indirect Influence): While the Fed doesn’t directly set mortgage rates, its decisions on the federal funds rate (its benchmark interest rate) have a significant ripple effect. A stable or predictable Fed policy usually translates into more stable mortgage rates.

The Ripple Effect: More Than Just Savings

This drop in mortgage rates isn't just about saving money for individuals; it's creating a positive feedback loop in the housing market.

  • Improved Affordability: As I touched on earlier, lower rates directly boost affordability. The median U.S. monthly housing payment has fallen to a two-year low. This crucial point means more people can qualify for a mortgage and afford to buy the home they want. For many, it’s the tipping point they’ve been waiting for.
  • Rising Purchase Demand: It’s no surprise, then, that purchase applications have surged. Freddie Mac notes a more than 20% increase in purchase applications compared to a year ago. This is a strong indicator that buyers are actively returning to the market, encouraged by the more favorable borrowing costs. I'm seeing this firsthand; my inbox has been buzzing with more inquiries lately.
  • Increased Inventory (Potential): As demand rises, it can also incentivize more homeowners to sell. Those who might have been reluctant to trade their current low-rate mortgage for a new, higher one might now feel more comfortable listing their homes, potentially leading to a healthier inventory of homes for sale.

What Does This Mean for You?

If you've been on the fence about buying a home, this is a fantastic time to seriously consider making a move. The 77 basis point drop in 30-year fixed rates represents a significant opportunity.

Here’s my advice:

  1. Get Pre-Approved: Don't wait! Understanding what you can afford is the first step. A pre-approval will give you a clear picture of your borrowing power and strengthen your offer when you find your dream home.
  2. Shop Around: This is absolutely critical. Even with these favorable rates, lenders will offer different terms. Comparing offers from multiple lenders—banks, credit unions, and mortgage brokers—is the best way to secure the absolute best rate for your specific situation. Don't settle for the first offer you get. I always recommend using comparison tools or speaking with a few different loan officers.
  3. Consider Your Financials: Remember, while the average rate has dropped, your personal rate will still depend on your credit score, down payment size, and debt-to-income ratio. Improving these aspects can further enhance your borrowing power and lead to even better rates.
  4. Don't Forget the 15-Year Option: If your budget allows, explore the 15-year fixed mortgage. While the monthly payments are higher, you’ll pay significantly less interest over the life of the loan and build equity much faster.

Looking Ahead: What to Watch

While current trends are positive, the market is dynamic. Experts anticipate that rates will likely remain relatively stable in the near term, staying in the low 6% range. However, unexpected news, particularly from upcoming job reports, could cause fluctuations.

The key factors that will continue to influence mortgage rates are:

  • Inflation Data: The government's inflation reports are closely watched.
  • Federal Reserve’s Stance: Any hints about future monetary policy will impact borrowing costs.
  • 10-Year Treasury Yields: This remains a strong indicator of where mortgage rates are heading.

For now, though, the message is clear: the lowered mortgage rates are making a real difference, opening doors for more Americans to achieve homeownership. It’s an exciting time to be in the market!

🏡 Two Beautiful Properties For Investors

Port Charlotte, FL
🏠 Property: Dorion St
🛏️ Beds/Baths: 4 Bed • 4 Bath • 2086 sqft
💰 Price: $412,400 | Rent: $3,190
📊 Cap Rate: 6.2% | NOI: $2,124
📅 Year Built: 2023
📐 Price/Sq Ft: $198
🏙️ Neighborhood: A+

VS

Kansas City, MO
🏠 Property: E 110th Terrace
🛏️ Beds/Baths: 3 Bed • 2 Bath • 1002 sqft
💰 Price: $220,000 | Rent: $1,700
📊 Cap Rate: 6.9% | NOI: $1,273
📅 Year Built: 1957
📐 Price/Sq Ft: $220
🏙️ Neighborhood: A-

Florida’s modern build with strong cash flow vs Missouri’s affordable rental with higher cap rate. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

Contact Us Now 

10 Cheapest Neighborhoods in Los Angeles (2026)

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Dreaming of living in the City of Angels but worried about your wallet? You're not alone! Los Angeles is famously glamorous and can feel notoriously expensive, with the citywide median home price sitting around a hefty $970,000 and average one-bedroom rents hovering near $2,700. However, I've dug into the numbers, and I can tell you definitively that finding an affordable spot in LA is absolutely possible.

The key is knowing where to look beyond the shiny brochures and famous zip codes. This guide dives deep into the 10 cheapest neighborhoods in Los Angeles, where you can snag a home for around $625,000 to $855,000 and rent a one-bedroom for roughly $1,100 to $2,200, offering a fantastic gateway into the LA lifestyle without breaking the bank.

As a longtime observer and frequent explorer of this sprawling metropolis, I've seen firsthand how much prices can swing from one block to the next. It often feels like a detective mission to uncover these hidden gems.

The data from sources like Zillow, Redfin, and Apartment List consistently points to certain pockets that offer a far better bang for your buck. These aren't just places with lower prices; they are vibrant communities with their own unique character, rich cultural tapestries, and surprisingly good access to everything LA has to offer.

We’re talking about areas that, even as the LA housing market saw a modest increase in median sale prices to over $1 million by late 2025, continued to offer accessible entry points. In fact, rents even saw a slight dip in late 2025, which is fantastic news for anyone looking for affordability.

What I find most compelling is that these affordable neighborhoods often hold the real heart of Los Angeles – the diverse communities, the incredible food, the burgeoning arts scenes, and the genuine neighborly spirit that sometimes gets lost in the glossier parts of town. Of course, no place is perfect. Sometimes, a lower price tag might mean a slightly longer commute or being mindful of safety statistics.

But that's precisely why I've broken down each neighborhood, giving you the inside scoop on what to expect, the good and the… well, the areas that might require a bit more thought. So, let’s get started on this exciting journey to find your affordable LA dream.

Understanding Affordability: It's More Than Just Rent

I always tell people that affordability in a city like Los Angeles is a balancing act. It's not just about the monthly rent or the mortgage payment. It’s about the whole package: how much your groceries cost, how much you spend on gas or public transit, your utility bills, and, importantly, the quality of life you get for your money.

In 2025, LA's overall cost of living was about 50% higher than the national average, with housing often eating up a huge chunk of people's budgets – sometimes 40-50%.

The neighborhoods we're looking at tend to score much better on affordability indexes. Why? Usually, it's a combination of factors: lower property taxes (around 0.8% of the home's value), more budget-friendly supermarkets, and readily available public transportation options that can cut down on car expenses.

Of course, you'll still be looking at utilities that might add up to $200 a month, and gas prices weren't exactly cheap either, hovering around $4.50 a gallon.

When you look at the demographics, these areas are incredibly diverse. Many have a significant Latino population, often making up 60-80% of residents, with median household incomes typically in the $50,000 to $70,000 range. This is a bit lower than LA's citywide median of around $75,000, which just goes to show how these neighborhoods offer a more accessible price point.

Now, about safety: it’s true that some urban areas can have higher crime rates than quieter suburbs, but many of these neighborhoods are experiencing positive trends thanks to community policing efforts and local initiatives. And commutes?

On average, expect to spend anywhere from 30 to 50 minutes getting to Downtown LA, either by car on the freeways or using the Metro system. Schools are generally rated around a 5-7 out of 10 on sites like GreatSchools, with a growing number of charter schools offering alternative options.

Looking ahead, the real estate market is always a bit of a guessing game, but even with mortgage rates around 6.3% in late 2025, experts were predicting modest price growth of 3-4% for 2026. This could mean these already undervalued spots might see some nice appreciation. For renters, rent stabilization policies, capping increases at 4% for older buildings, provide some much-needed predictability.

Here’s a quick snapshot comparing these neighborhoods to the city as a whole and the national average:

Comparative Affordability Table (2025 Data)

Metric Citywide Average These Neighborhoods Avg. National Avg.
Median Home Price $970,000 $725,000 $400,000
Avg 1BR Rent $2,700 $1,800 $1,450
Cost of Living Index 150 130-140 100
Median Income $75,000 $60,000 $68,000
Property Tax Rate 0.8% 0.8% 1.1%

10 Cheapest Neighborhoods in Los Angeles

rent price of 10 cheapest neighborhoods in los angeles

Let's dive into the specific areas that are making LA more accessible. I’ve tried to capture the essence of each place, giving you more than just numbers.

Quick Comparison Table of the 10 Cheapest Neighborhoods

Neighborhood Avg 1BR Rent (2025) Median Home Price (2025) Key Appeal
Pacoima $1,800 $625,000 Family-focused, parks
Florence ~$1,850 $630,000 South LA culture, transit
Boyle Heights $1,636 ~$672,000 Murals, taquerias, arts
Pico-Union $1,475 $659,000 Historic, central access
Crenshaw $1,850 $666,000 African-American art hub
Panorama City $1,631 $674,000 Valley value, recreation
Van Nuys $2,045 $780,000 Transit hub, diverse food
Arleta $2,010 $757,000 Quiet residential, yards
Congress North $1,163 $835,000 Walkable, near Expo Line
Sunland-Tujunga $1,851 $855,000 Nature trails, suburban feel

1. Pacoima

Location: Northeast San Fernando Valley
Median Home Price: ~$625,000 (Reports show a decrease of about 12.6% year-over-year as of November 2025)
Average 1BR Rent: ~$1,800

Pacoima feels like a classic, family-oriented neighborhood with deep roots, especially within its predominantly Latino community (80% of residents). It’s the kind of place where neighbors know each other. If you're looking for space and a strong sense of community, this might be your spot.

  • Demographics: Median age is around 32, with household incomes averaging about $65,000.
  • Safety: While crime rates are a bit higher than the city average, community programs are actively working to improve things, with a focus on property crimes.
  • Amenities: You’ve got great local spots like Branford Park for sports and picnics, and local markets like Vallarta Supermarket for groceries. For outdoor adventures, Hansen Dam is a popular spot for hiking.
  • Commute: Getting to Downtown LA will take you about 45-60 minutes via the I-5 or 118 freeways. Public transit options are available through bus lines, but it's more car-dependent.
  • Schools: Pacoima Middle School gets a 6/10, and there are charter options like Discovery Charter Prep that score an 8/10.
  • My Take: Pacoima offers excellent value, especially for families. The community events, like the vibrant Dia de los Muertos festivals, are truly special. The main drawbacks are that you'll likely need a car, and air quality can be a concern due to nearby airports. I see potential here, with new retail developments suggesting good growth prospects for home values, maybe around 5% in 2026.

2. Florence

Location: South LA
Median Home Price: ~$630,000 (Reported a slight decrease of 3.1% year-over-year)
Average 1BR Rent: ~$1,850

Florence offers a raw, authentic LA experience. It’s a neighborhood with a strong community spirit and a gritty charm that many residents cherish. If you want to experience South LA's rich culture, this is a great starting point.

  • Demographics: Richly diverse with about 70% Latino and 20% Black residents. Median income is around $55,000, with the median age at 30.
  • Safety: Crime rates can be a concern, particularly violent crime. However, the LAPD has made efforts, reportedly reducing incidents by about 10% since 2024.
  • Amenities: You'll find local parks, various markets, and you're not far from landmarks like the Watts Towers. The casual dining scene is great, with plenty of soul food spots.
  • Commute: A quick 30-45 minute trip to Downtown LA is possible via the Metro A Line or the I-110 freeway.
  • Schools: Florence Avenue Elementary has a rating of 5/10.
  • My Take: Florence is all about culture and improving transit. It’s not the place for a bustling nightlife, and it’s definitely a dense urban environment. However, ongoing redevelopment projects could slowly nudge property values upward.

3. Boyle Heights

Location: East of Downtown LA
Median Home Price: ~$672,000 (This is an average, with Zillow at $629k and Redfin at $715k)
Average 1BR Rent: ~$1,636

Boyle Heights is a living museum of Mexican-American history and culture. Walking through its streets, you’ll see stunning murals, smell incredible food, and feel the pulse of a community that has shaped so much of LA's identity.

  • Demographics: Overwhelmingly Latino (about 85%), with a median income of $52,000 and a median age of 31.
  • Safety: Crime is moderate, often involving property theft. Interestingly, the vibrant community murals seem to act as a deterrent to vandalism.
  • Amenities: Mariachi Plaza is a cultural landmark, and you can’t miss the authentic taquerias like Guisados. The Gold Line is a convenient way to get around. It also boasts a walk score of 78.
  • Commute: Just a 20-30 minute hop to Downtown LA.
  • Schools: Roosevelt High School scores a 6/10.
  • My Take: Boyle Heights is a gem for its arts scene and family-friendly markets. The main challenges are traffic congestion and the pressures of gentrification. I believe its strong cultural identity will help it remain a stable and desirable place to live.

4. Pico-Union

Location: West of Downtown LA
Median Home Price: ~$659,000
Average 1BR Rent: ~$1,475

As one of LA's oldest neighborhoods, Pico-Union has a rich history and a strong Central American influence. It’s a vibrant, bustling area that offers a true urban living experience.

  • Demographics: Around 75% Latino, with a median income of $48,000 and a median age of 29.
  • Safety: Crime rates are on the higher side, but its central location means that policing is generally more present.
  • Amenities: You'll find fantastic pupuserias, historic churches, and plenty of discount stores. The Metro system is easily accessible here. Its walk score is a solid 80.
  • Commute: Downtown LA is incredibly close, just a 15-25 minute trip.
  • Schools: Berendo Middle School rates a 5/10.
  • My Take: Pico-Union has so much historic charm and is wonderfully walkable. The downsides are the scarcity of parking and the general density. However, its proximity to USC is starting to make it more attractive for potential value appreciation.

5. Crenshaw

Location: South LA
Median Home Price: ~$666,000
Average 1BR Rent: ~$1,850

Crenshaw is a cultural powerhouse, especially significant for its African-American heritage. It’s a historically rich area that’s also experiencing a modern renaissance, with a cool, laid-back vibe.

  • Demographics: A mix of 60% Black and 30% Latino residents, with a median income of $60,000 and a median age of 35.
  • Safety: Like many urban areas, property crime is an issue, but community hubs are actively working to improve safety.
  • Amenities: Leimert Park Village is a must-visit for art and music lovers. Don't miss out on legendary spots like Dulan's soul food. Commuting is easy via the Expo Line.
  • Commute: About a 30-minute ride to Downtown via the Expo Line.
  • Schools: Crenshaw High School scores a respectable 7/10.
  • My Take: Crenshaw offers a unique blend of trendy yet calm, with a growing number of art galleries. The limited high-end shopping might be a drawback for some, but its cultural significance and rising interest mean property prices are likely to see about a 4% increase.

6. Panorama City

Location: Central San Fernando Valley
Median Home Price: ~$674,000
Average 1BR Rent: ~$1,631

If you're looking for more space for your buck in the San Fernando Valley, Panorama City is worth checking out. It's a diverse and generally quieter part of the valley.

  • Demographics: Quite diverse, with about 70% Latino residents. Median income is around $62,000.
  • Safety: Generally considered average. The presence of rec centers helps keep youth engaged.
  • Amenities: You have the Sepulveda Recreation Center for sports and activities, and the Panorama Mall for shopping. Its walk score is 69.
  • Commute: You're looking at a 35-50 minute drive to Downtown LA, primarily via the I-405 freeway.
  • Schools: Vista Middle School gets a 6/10.
  • My Take: This neighborhood is a good choice if you prefer a slightly less hectic pace and access to sports facilities. The main flip side is being dependent on a car for most errands. I expect steady growth here as the Valley remains an attractive area for many.

7. Van Nuys

Location: San Fernando Valley
Median Home Price: ~$780,000
Average 1BR Rent: ~$2,045

Van Nuys is a key hub in the Valley, known for its excellent public transit connections and a diverse food scene that reflects its multicultural population.

  • Demographics: A mixed population, with about 50% Latino residents. Median income is around $65,000.
  • Safety: Crime is moderate. The presence of a government center contributes to a sense of security.
  • Amenities: It boasts beautiful Lake Balboa Park, countless taco trucks and diverse eateries, and the Metrolink station. Its walk score is 71.
  • Commute: A manageable 30-45 minute commute to Downtown.
  • Schools: Van Nuys High School is rated 7/10.
  • My Take: Van Nuys offers a fantastic variety of food and great park access. The streets can be busy, but upcoming infrastructure upgrades could make it even more appealing.

8. Arleta

Location: San Fernando Valley
Median Home Price: ~$757,000
Average 1BR Rent: ~$2,010

Arleta offers a more traditional, quiet residential feel within the San Fernando Valley. If you're looking for a place with yards and a bit more privacy, this is a contender.

  • Demographics: Predominantly Latino, at about 75%, with a median income of $68,000.
  • Safety: Known for low crime rates, making it very family-friendly.
  • Amenities: Branford Park is nearby, and the streets are generally wider and less congested than in more urban areas. It has a walk score of 51.
  • Commute: About a 40-minute drive to Downtown via the CA-170 freeway.
  • Schools: Arleta High School scores a 6/10.
  • My Take: Arleta is all about peace, quiet, and space. The downside is that it's quite car-dependent. Its suburban stability is its main draw.

9. Congress North

Location: Near West Adams
Median Home Price: ~$835,000
Average 1BR Rent: ~$1,163

This is a particularly interesting find, offering some of the lowest rents I've seen. It's a compact area right near the vibrant West Adams neighborhood, known for its revitalization.

  • Demographics: Diverse population, with a median income around $58,000.
  • Safety: Safety is improving as the area sees more development.
  • Amenities: You'll find a growing number of cozy cafes and importantly, it's very close to the Expo Line, making transit a breeze. It has an excellent walk score of 80.
  • Commute: Downtown LA is only about 20 minutes away.
  • Schools: Residents often have access to excellent schools near USC.
  • My Take: The budget-friendly rents here are a huge draw. While parking can be a challenge, its walkability and proximity to transit and developing areas make it a very shrewd choice. I anticipate this area will continue to gentrify.

10. Sunland-Tujunga

Location: Foothills of the San Gabriel Mountains
Median Home Price: ~$855,000
Average 1BR Rent: ~$1,851

For those who love nature and a suburban feel, Sunland-Tujunga offers an escape into the foothills. It’s a peaceful area with access to incredible hiking trails.

  • Demographics: A mix of about 60% White and 30% Latino residents, with a median income around $70,000.
  • Safety: Generally very safe, with a quiet, almost rural atmosphere.
  • Amenities: The Angeles National Forest is your backyard, offering endless outdoor activities. You'll find charming cottage-style homes. Its walk score is 56.
  • Commute: It's a bit more remote, with a 45-60 minute commute to Downtown LA.
  • Schools: Verdugo Hills High School gets a 7/10.
  • My Take: This is the place for tranquility and nature lovers. Its distance from the city center is the main trade-off. The growing interest in eco-friendly living could make this area even more appealing in the future.

median price of 10 cheapest neighborhoods in los angeles

Broader Insights and Tips for Navigating LA on a Budget

Living in these neighborhoods means embracing the real, diverse Los Angeles. I’ve found that they often offer a more authentic experience than the more touristy or affluent areas. For potential homebuyers, the good news is that in early 2025, about 17% of households could actually afford the median home prices in these areas, which was an improvement from previous years. Renters, you're in a good spot too, with rents stabilizing, though competition is always a factor in LA.

When you're on the hunt, I highly recommend using tools like RentCafe to find listings and checking local crime maps on LAPD websites for the most up-to-date safety information. If you're considering buying in the Valley, be aware that Homeowners Associations (HOAs) are common and can add $200-$400 per month to your costs.

It's also worth considering the environmental factors. The Valley can experience intense heat waves, and some South LA areas might have air quality concerns. On the economic front, many of these neighborhoods offer good proximity to job centers, whether it's logistics in the Valley or educational and healthcare jobs near areas like USC.

In summary, while the Los Angeles housing market continues to evolve, these ten neighborhoods stand out as viable, affordable options. They offer a chance to live the LA dream without the overwhelming financial strain. My best advice? Visit them, walk around, talk to locals, and see where you feel most at home. Consulting with local real estate agents who specialize in these areas can also provide invaluable personalized advice. Happy house hunting!

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20 Hottest ZIP Codes for the Strongest Home Price Growth in 2026

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Ever wondered where your money could work hardest in the housing market over the next few years? With all the talk about market shifts, it's easy to overlook the hidden gems where home values are still set to soar. But I’ve got my eye on where Zillow says the real action will be.

While Zillow's national forecast predicts a modest 1.7% rise in home values for 2026, some select zip codes are projected to see significantly higher appreciation, with their home prices climbing by as much as 7-8% by the end of 2026, making them prime spots for potential homeowners and savvy investors who know where to look.

Real estate can feel like a big puzzle, especially when national headlines paint a picture of slow growth. You read about cooling markets, rising interest rates, and affordability challenges. It’s enough to make anyone hesitant. But from my years of observing these cycles, I’ve learned one crucial thing: real estate is inherently local. What's happening in one neighborhood can be vastly different from what's unfolding just a few miles away. That's why diving into specific market data, especially from a reputable source like Zillow, is so vital.

20 Hottest ZIP Codes for the Strongest Home Price Growth in 2026

Before we zoom in on the hottest spots, let's briefly touch on Zillow's overall forecast for the housing market in 2026. This gives us the essential context for understanding why the select zip codes we'll discuss are truly remarkable.

According to Zillow’s latest projections, the national housing market in 2026 is set for a gradual recovery marked by small, but significant, wins. Here’s a quick rundown of what they anticipate:

  • Modest Home Value Appreciation: Nationally, home values are expected to rise by 1.7% in 2026. This is a far cry from the double-digit gains we saw during the pandemic boom years. It suggests a more balanced market where supply, no longer as tight, gives buyers a bit more leverage.
  • Pickup in Existing Home Sales: After a couple of slower years, Zillow forecasts existing home sales to reach 4.3 million in 2026, representing a solid 5.2% year-over-year gain. This surge is largely attributed to forecasted lower mortgage rates making homeownership more accessible and unlocking pent-up demand. The recovery is expected to concentrate in regions like the Southeast and West, where demand is especially sensitive to borrowing costs.
  • Improved Affordability (Gradually): Lower interest rates should slowly ease the burden of housing costs. However, Zillow emphasizes that this will be a gradual improvement, not a sudden shift.
  • Rental Market Dynamics:
    • Single-Family Rents: These are projected to increase by 1.6% year-over-year by the end of 2026.
    • Multi-Family Rents: Here's an interesting one – multi-family rents are expected to decline by 1% year-over-year by the end of 2026. This is due to high vacancies and a significant influx of new supply.

So, the national picture is one of slow and steady progress, with buyers gaining a little more breathing room and sellers still building equity, just at a more sustainable pace. Yet, even within this measured outlook, certain localized markets are positioned for considerable gains. This tells me that while patience is key nationally, strategic investment in specific areas can still yield impressive returns.

Here Are the 20 Hottest Zip Codes for 2026

This is where it gets exciting! Despite the broader national trends, Zillow's data points to specific geographical pockets where local factors are expected to ignite home price growth significantly higher than the national average.

Let's dive into the 20 zip codes where home prices are projected to rise the most by the end of 2026:

Zip Code City State Metro Area Key County Projected Growth by End 2025 (%) Projected Growth by End 2026 (%)
11739 Great River NY New York-Newark-Jersey City Suffolk County 4.5 8.2
81656 Woody Creek CO Glenwood Springs Pitkin County 1.7 7.8
81615 Snowmass Village CO Glenwood Springs Pitkin County 1.6 7.7
54416 Bowler WI Shawano Shawano County 2.6 7.5
8232 Pleasantville NJ Atlantic City-Hammonton Atlantic County 1.4 7.4
61769 Forrest IL Pontiac Livingston County 3.0 7.4
83340 Ketchum ID Hailey Blaine County 1.8 7.3
31097 Yatesville GA Thomaston Upson County 1.5 7.3
54486 Shawano WI Shawano Shawano County 2.2 7.1
60921 Chatsworth IL Pontiac Livingston County 1.7 7.1
30285 The Rock GA Thomaston Upson County 1.4 7.0
66105 Kansas City KS Kansas City, MO-KS Wyandotte County 2.6 6.9
54408 Aniwa WI Wausau-Weston Marathon County 2.7 6.9
60929 Cullom IL Pontiac Livingston County 2.6 6.9
8402 Margate City NJ Atlantic City-Hammonton Atlantic County 1.1 6.8
54414 Birnamwood WI Shawano Shawano County 2.1 6.8
8406 Ventnor City NJ Atlantic City-Hammonton Atlantic County 1.1 6.7
63382 Vandalia MO Hannibal Ralls County 1.8 6.7
54139 Lena WI Green Bay Oconto County 1.5 6.7
54128 Gresham WI Shawano Shawano County 2.5 6.7

(Data source: Zillow, as of end November 2025 forecast reporting for 2026 projections.)

What Makes These Areas Special? My Insights into Local Growth Factors

Looking at this list, something immediately jumps out at me. We aren't just seeing a single type of market or region dominating. Instead, there's a fascinating mix of locales, and that’s precisely what makes these predictions so insightful. As someone who’s constantly tracking housing trends, here are my thoughts on the underlying drivers for these specific hot spots:

Resort and Lifestyle Destinations

Notice the strong presence of places like Woody Creek, CO (81656), Snowmass Village, CO (81615), and Ketchum, ID (83340). These are iconic resort towns. What I've consistently observed is that properties in such high-demand vacation and lifestyle destinations often defy broader market trends. They cater to a different buyer pool – often those looking for second homes, investment properties, or a permanent move to a high-quality-of-life area. These buyers typically have strong financial footing, making these markets less susceptible to minor interest rate fluctuations. The appeal isn't just a house; it's a lifestyle investment.

Emerging Rural and Exurban Hubs

A significant number of these top zip codes are in less densely populated areas, often near smaller regional metros, such as the numerous entries from Wisconsin: Bowler (54416), Shawano (54486), Aniwa (54408), Birnamwood (54414), Lena (54139), and Gresham (54128). Also, parts of Illinois like Forrest (61769), Chatsworth (60921), and Cullom (60929), or even Georgia's Yatesville (31097) and The Rock (30285).

My take here is that these areas likely represent a powerful combination of factors:

  • Affordability Seekers: As housing costs in major cities remain high, people are willing to move a little further out to secure more space for their money.
  • Remote Work Migration: The shift to remote and hybrid work has untethered many from traditional office locations, allowing them to choose quality of life over commute times. These quieter towns offer peace, green spaces, and often tighter-knit communities.
  • Undiscovered Value: Many of these locations might be “undiscovered” gems, catching the eye of investors and new residents before widespread market recognition drives prices sky-high. When larger capital starts flowing into these areas, the growth can be explosive.
  • Local Investments & Growth: Sometimes, localized economic development, new businesses, or infrastructure improvements can spark significant interest in areas that were previously overlooked.

Proximity to Major Metros with Unique Appeal

Great River, NY (11739), while part of the vast New York-Newark-Jersey City metro area, likely benefits from its specific location in Suffolk County. This could imply a desirable suburban or exurban feel within commuting distance of one of the world's largest economic centers. It's often the desirable pockets just outside the immediate hustle and bustle that see strong appreciation as city dwellers look for more space without sacrificing access.

Similarly, the New Jersey zip codes – Pleasantville (8232), Margate City (8402), and Ventnor City (8406) – are all within the Atlantic City-Hammonton metro area. My experience suggests these are likely coastal communities or areas benefiting from renewed interest in shore properties, perhaps buoyed by tourism, second-home demand, or even year-round residents seeking a different pace of life. Even when broader markets temper, demand for prime coastal real estate often remains strong.

Regional Economic Performance

Finally, Kansas City, KS (66105) stands out as a more urban entry. Kansas City, Missouri-Kansas is a strong, growing metro area. Zip codes within such economically vibrant regions, especially those undergoing revitalization or boasting strong community assets, can see impressive gains due to sustained local demand and investment.

My Personal Advice: Don't Just Look, Understand

What I gather from this Zillow data is that the overall market is indeed moderating, but opportunities are far from gone. In fact, a “modest” national market often means greater differentiation in local performance. This is where savvy investors and homebuyers can really shine.

  • Do your homework: Don't just pick a zip code off this list. Dig deeper. What are the specific local employment trends? Are there new businesses or developments planned? What’s the quality of schools? Are there unique natural amenities or recreational opportunities?
  • Consider the ‘Why': Ask yourself why this area might be growing faster than others. Is it a lifestyle magnet? An affordability escape? A burgeoning economic hub? Understanding the “why” will give you a clearer picture of sustainability.
  • Long-Term View: While these are projections for 2026, real estate is generally a long-term play. Invest with the intention of holding for several years if possible to ride out any short-term fluctuations.
  • Local Expertise is Key: My opinion is that partnering with a local real estate agent who truly understands these specific zip codes is invaluable. They can offer granular insights that national data sometimes misses.

The bottom line for me is this: Even in a market settling into a more “normal” pace, there are always areas that outperform. The trick is identifying them early and understanding the unique drivers behind their potential success. These 20 zip codes, according to Zillow's projections, offer a compelling look into where that success might be found in 2026. This isn't about blind speculation; it's about informed, strategic decision-making in a dynamic market.

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Mortgage Rates Today, Jan 10: 30-Year Refinance Rate Drops Sharply by 21 Basis Points

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Great news for anyone looking to refinance their home loan! As of today, January 10th, the national average for a 30-year fixed refinance rate has seen a notable drop, settling at 6.41%. This marks a significant decrease of 21 basis points from the previous week's average of 6.62%, according to data from Zillow. This move signals a potentially more favorable environment for homeowners looking to adjust their mortgage terms.

This 21 basis point drop might sound small to some, but I know firsthand what it can mean. It’s not just a number; it often translates into real savings and breathing room for families.

Mortgage Rates Today, Jan 10: 30-Year Refinance Rate Dips 21 Basis Points

What a Drop of 21 Basis Points Really Means for You

Let’s break down what this reduction in mortgage rates can actually mean for your wallet and your homeownership journey. When we talk about a “basis point,” it's simply one-hundredth of a percent. So, a 21 basis point drop is equal to 0.21%. While this might seem minor, when you're talking about the hundreds of thousands of dollars involved in a mortgage, it adds up.

Think of it like this:

  • For a 30-Year Fixed Refinance: This is the most common type of mortgage, and it offers stability. With this drop, your monthly payments become more manageable. This extra bit of cash each month can give you more flexibility for other important things, like saving for emergencies, investing, or even just having a little more breathing room in your budget. The trade-off, as you know, is that you'll pay more interest over the full 30 years compared to a shorter loan. But the immediate relief on your monthly budget can be invaluable.
  • For a 15-Year Fixed Refinance: If you're on the 15-year path, you're already committed to paying off your loan faster, saving a ton on total interest and building equity quicker. A rate dip here makes that even sweeter. Your total interest paid over the life of the loan will be even lower, and you'll be mortgage-free sooner. The downside, of course, is that the monthly payments are inherently higher, so this kind of drop is more about maximizing savings for those who can comfortably afford the payments.

Right now, the national average for a 15-year fixed refinance rate is holding steady at 5.40%. And for those considering an Adjustable-Rate Mortgage (ARM), the 5-year ARM refinance rate is currently at 7.21%. It's important to look at all these options to see what best fits your current financial situation and your long-term goals.

Key Factors Driving Today's Mortgage Rates

It's no accident that rates are moving. Several big economic forces are at play, and understanding them helps paint a clearer picture of where we are and where we might be headed.

  • Secondary Market Intervention: One of the biggest headlines recently has been President Trump's instruction for Fannie Mae and Freddie Mac to buy a substantial amount of mortgage bonds – up to $200 billion. This is a pretty direct move aimed squarely at lowering mortgage rates. When these government-sponsored enterprises buy more mortgage-backed securities, it increases demand for them, which in turn drives down their yields, and consequently, mortgage rates for consumers. This is a powerful tool, and we're already seeing its impact.
  • The Federal Reserve's Stance: You can't talk about interest rates without talking about the Federal Reserve. They've been quite active. Throughout 2025, the Fed made three interest rate cuts, ending the year with their key interest rate (the federal funds rate) in the range of 3.75% to 4.00%. For 2026, the current outlook suggests they might only make one more rate cut. This cautious approach from the Fed influences the broader interest rate environment, including mortgages, but their previous actions have certainly helped ease some pressure.
  • A Surge in Refinance Activity: Unsurprisingly, with these rate drops, homeowners are jumping into action. We're seeing reports of refinance applications soaring, with some figures showing an increase of 108% to 133% compared to the same time last year! This tells me people are actively seeking to take advantage of the lower rates, which is a smart move for many.

A Look Ahead: Will Rates Keep Falling?

This is the million-dollar question for many of my clients. Will this downward trend continue, or is this a temporary dip? The truth is, even the experts are a bit divided.

  • Conservative Predictions: The Mortgage Bankers Association (MBA) is forecasting that 30-year fixed rates will likely hover around the 6.4% mark for most of 2026. This suggests a period of relative stability after this recent drop.
  • Optimistic Projections: On the other hand, Fannie Mae has a more optimistic view, predicting that rates could potentially fall all the way to 5.9% by the end of the fourth quarter in 2026. That would be a significant further reduction and a really exciting prospect for many homeowners.

From my perspective, the market is a complex interplay of government policy, economic indicators, and global events. The intervention to buy mortgage bonds is a significant factor right now, but the Fed's future actions and broader economic health will also play crucial roles. It's a good time to be informed and to consult with professionals to see what strategy makes the most sense for your unique financial situation.

Mortgage Rate Snapshot: January 10, 2026

Here’s a quick rundown of the current national averages, as reported by Zillow:

Loan Type Average Rate
30-Year Fixed Refinance 6.41%
15-Year Fixed Refinance 5.40%
5-Year ARM Refinance 7.21%

Remember, these are national averages. Your actual rate will depend on your credit score, loan-to-value ratio, and the specific lender you work with. But this general trend gives us a good benchmark for how things are looking today.

This dip in rates is definitely encouraging news. It’s a reminder that even in uncertain economic times, opportunities arise for homeowners to improve their financial standing. If you’ve been on the fence about refinancing, now might be the perfect moment to explore your options.

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Today’s Mortgage Rates, Jan 10: Homebuyers Can Get 30-Year Fixed Rate at 5.91%

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As of January 10th, the average 30-year fixed mortgage rate has dipped below 6%, currently sitting at 5.91%, and the 15-year fixed rate at 5.36%, according to Zillow. This is welcome news for many looking to buy a home, as it marks a return to levels not seen for quite some time. While these numbers are the headline, understanding what's behind them is what truly matters for anyone navigating the mortgage market.

Right now, we're seeing a particularly interesting combination of these forces at play. President Trump's recent proposals, including a ban on institutional buyers of single-family homes and a directive for Fannie Mae and Freddie Mac to purchase significant amounts of mortgage bonds, have definitely caught the market's attention and seem to be a driving factor behind this downward trend.

Today's Mortgage Rates, Jan 10: Homebuyers Can Get 30-Year Fixed Rate at 5.91%

Decoding Today's Numbers: A Snapshot

Let's break down what these rates mean practically. When we talk about mortgage rates, we're essentially looking at the cost of borrowing money to buy a house. A lower rate means you pay less in interest over the life of your loan, which can translate to substantial savings.

Here's a look at the average rates we're seeing today, according to Zillow:

Loan Type Average Rate
30-year fixed 5.91%
20-year fixed 5.83%
15-year fixed 5.36%
5/1 ARM 6.17%
7/1 ARM 6.36%
30-year VA 5.57%
15-year VA 5.21%
5/1 VA 5.36%

You'll notice a few things here. The 30-year fixed is the most common choice for homebuyers because it offers a predictable monthly payment that stays the same for the entire loan term. The 15-year fixed has a lower interest rate, which means you pay off your mortgage faster and build equity more quickly, but your monthly payments will be higher.

Adjustable-rate mortgages (ARMs) like the 5/1 and 7/1 start with a lower initial interest rate for a set period, but then the rate can adjust periodically based on market conditions. These can be attractive if you plan to move or refinance before the initial fixed period ends, but they come with more uncertainty. VA loans, for those who qualify, often feature particularly attractive rates, as seen in the table, designed to support our nation's heroes.

The Ripple Effect of Government Action

The recent news regarding President Trump's proposed measures is a significant piece of the puzzle. His administration is looking at two key areas to influence mortgage rates:

  • Banning Institutional Buyers: The idea here is to reduce competition from large companies that buy single-family homes, potentially making more properties available to individual buyers and, in theory, easing price pressures. While the direct impact on mortgage rates is debated, reducing demand from institutional investors could indirectly influence the housing market.
  • Fannie Mae and Freddie Mac Bond Purchases: This is a more direct lever. Fannie Mae and Freddie Mac are government-sponsored enterprises that play a crucial role in the mortgage market by buying mortgages from lenders, packaging them into securities, and selling them to investors. When these entities purchase more mortgage bonds, it increases the demand for those bonds. Higher demand for mortgage bonds generally leads to lower bond yields, and since mortgage rates tend to follow bond yields, this action can push mortgage rates down.

The market has indeed responded favorably to these announcements. The fact that the 30-year fixed rate has dropped below 6% is a strong indicator of this. It's a psychology game as much as a financial one; when buyers and lenders see these kinds of interventions, it can create optimism and drive behavior.

What This Means for You (My Thoughts)

From my perspective, this move by the administration is a calculated attempt to stimulate the housing market. Lower mortgage rates make buying a home more affordable, which can encourage more people to enter the market. This is particularly important at a time when affordability has been a major concern for many.

However, it's always wise to be cautiously optimistic. While government intervention can have an immediate impact, the long-term sustainability of these lower rates depends on a variety of factors. Some experts are divided on whether these actions will lead to a sustained drop or just a temporary dip. I tend to agree that without continued, robust economic factors supporting lower rates, the effects might be modest or short-lived.

Beyond the Headlines: Key Influences

It’s not just presidential directives that move mortgage rates. Several underlying economic forces are constantly at play:

  • The 10-Year Treasury Yield: This is one of the biggest indicators for mortgage rates. When the yield on the 10-year Treasury note goes up, mortgage rates typically follow, and vice versa. This is because mortgage-backed securities are often compared to Treasury bonds in terms of risk and return.
  • Inflation: If inflation is high, the Federal Reserve might raise interest rates to cool down the economy, which can lead to higher mortgage rates. Conversely, slower-than-expected inflation reports, like those we've seen recently, can put downward pressure on rates.
  • Economic Growth and Employment: A strong, growing economy with low unemployment can sometimes lead to higher interest rates as demand increases. However, a cooling labor market can signal that the economy is not overheating, which can also contribute to lower rates.

The recent reports of slower inflation and a cooling labor market in late 2025 have undoubtedly contributed to the general dip in rates we're observing. These fundamental economic signals are arguably more influential in the long run than any single policy announcement.

Looking Ahead: What Experts are Saying

Forecasting mortgage rates is a tricky business, and everyone has an opinion. However, based on current trends and expert analyses, here's what I'm hearing:

  • Hovering Around 6%: Most experts anticipate that mortgage rates will continue to hover around the 6% mark for a good portion of 2026. This suggests a period of relative stability compared to the sharp fluctuations seen in previous years.
  • Potential for Further Dips: Some forecasts, including those from entities like Fannie Mae, suggest that the 30-year fixed rate could dip slightly below 6% by the end of the year. This would be a continuation of the positive trend we're seeing today.
  • Market Volatility: While there's a trend towards stabilization, remember that rates can still fluctuate daily. It's essential to stay informed and act when the time is right for you.

My Takeaway for Homebuyers

If you're considering buying a home, these current rates offer a compelling opportunity. The fact that the 30-year fixed is below 6% is a significant psychological and financial milestone. My advice is to:

  1. Get Pre-Approved: This will give you a clear understanding of what you can afford and lock in a rate for a period, giving you some breathing room.
  2. Shop Around: Don't just go with the first lender you talk to. Compare offers from multiple lenders to ensure you're getting the best deal.
  3. Consider Your Long-Term Plans: Will you be in this home for five years, or twenty-five? This will influence whether a fixed-rate or an ARM might be a better fit for your situation.
  4. Stay Informed: Keep an eye on market news and consult with a trusted mortgage professional.

Navigating the mortgage market can feel overwhelming, but with a little understanding and a lot of homework, you can make informed decisions that set you up for success. Today's rates are a positive sign, and with careful planning, this could be your moment to achieve the dream of homeownership.

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Mortgage Refinance Demand Surges 133% as Rates Dip Below Recent Highs

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If you've been feeling the pinch of higher mortgage payments lately, you're not alone. The good news is that a significant shift is happening in the housing market right now: mortgage refinance applications have exploded, jumping more than 133% as interest rates finally start to come down from their recent peaks. This is the moment many homeowners have been waiting for to potentially save a lot of money on their monthly housing costs.

When rates were climbing throughout 2023 and into early 2025, it felt like refinancing was a distant dream for most. Locking in a rate above 7% was the norm, and the math just didn't work for paying those fees and losing your already low rate. But now, with rates finally dipping below those challenging highs, the floodgates have opened for refinance activity.

Mortgage Refinance Demand Surges 133% as Rates Dip Below Recent Highs

Why the Sudden Rush? It's All About the Money!

Let's break down what's really driving this refinance boom. It’s quite simple, actually: interest rates have come down from the sky-high levels we saw just a year ago.

  • From Highs to Hope: Back in January 2025, the average rate for a 30-year fixed mortgage was hovering around 7.04%. That's a significant monthly expense! Fast forward to the first week of January 2026, and those same rates have fallen to an average of 6.16%. While it might not sound like a massive difference on paper, that drop of nearly a full percentage point can translate into hundreds of dollars saved every single month for homeowners.
  • The Power of Percentage Points: The people who are rushing to refinance now are often those who bought or refinanced when rates were high. For them, a dip of even 0.5% to 1.0% is a game-changer. It's enough to make the costs of refinancing worth it, leading to substantial monthly savings that can free up cash for other financial goals.
  • Fed's Helping Hand: A big reason for this rate drop is the Federal Reserve. After making several interest rate cuts in late 2025, mortgage rates finally found a sweet spot. These rate cuts have been the catalyst, bringing mortgage rates to their lowest point in about three years. This has made refinancing a financially sensible option for a huge chunk of homeowners who were previously priced out.

Beyond Just Lower Rates: Tapping into Home Equity

It's not just about lowering monthly payments anymore. Many homeowners are also using this refinance wave to access the wealth they've built up in their homes. Home prices have seen impressive growth over the past few years, and a lot of people have a significant amount of equity sitting there.

  • Cash-Out Power: A cash-out refinance allows you to borrow more than you owe on your mortgage and take the difference in cash. By mid-2025, estimates showed that the average mortgaged household had around $181,000 in untapped home equity waiting to be accessed. This surge in refinancing is a perfect opportunity for homeowners to tap into that equity for home renovations, paying off high-interest debt, or investing.
  • Lower Fees Sweeten the Deal: Another factor making refinancing more attractive is the reduction in associated fees. The FHA rate, for example, recently dropped to its lowest point since September 2024. This has specifically boosted refinance applications for both FHA and conventional loans in late 2025, showing that even the smaller costs are becoming more manageable.

What Experts Are Saying About 2026

Looking ahead, the outlook for mortgage rates remains cautiously optimistic. Industry experts and major housing organizations are forecasting a fairly stable, and hopefully still attractive, interest rate environment.

  • Rate Stability Expected: The consensus from prominent sources like Fannie Mae and the National Association of Realtors is that we'll likely see rates continue to trade in the 5.9% to 6.4% range throughout 2026. This means that the window of opportunity for refinancing probably won't slam shut anytime soon.
  • Refinance Volume on the Rise: With these favorable rate conditions, total refinance volume in the U.S. is predicted to climb by over 30% annually in 2026, reaching an estimated ~$670 billion. This indicates a strong and sustained period of refinance activity.
  • Could Rates Go Even Lower? While some economists believe we're near the bottom with rates around 6%, others suggest there's still potential for further declines. If the gap between mortgage rates and the 10-year Treasury yield continues to shrink, we could see rates dip by another 50 basis points (0.5%) later in the year. This would be another huge incentive for homeowners to explore refinancing.

Are You Eligible to Refinance? Let's Find Out.

The big question for many is: “Can I actually refinance my mortgage right now?” The good news is that with rates dropping, lenders are more eager to work with a wider range of borrowers. However, you still need to meet certain criteria.

General Eligibility Requirements to Keep in Mind:

Here’s what lenders will typically look at when you apply to refinance:

  • Credit Score: This is a big one. Most lenders want to see a credit score of at least 620 for a conventional loan. If you have an FHA loan, the minimum can be as low as 580. But here's the insider tip: a higher score, like 740 or above, will almost always get you the best possible interest rate.
  • Home Equity (or LTV Ratio): Lenders want to know how much of your home's value you actually own. For a conventional refinance, they usually prefer you to have at least 20% equity in your home. This translates to an 80% Loan-to-Value (LTV) ratio. If you have less equity, you might have to pay Private Mortgage Insurance (PMI). However, programs like the FHA Streamline and VA IRRRL don't always require you to have this much equity.
  • Debt-to-Income (DTI) Ratio: This ratio compares your total monthly debt payments (including your potential new mortgage payment) to your gross monthly income. Most lenders like to see this below 43%. But don't worry if yours is a little higher; some programs and lenders will go up to 50% or even more if you have strong compensating factors, like a healthy savings account.
  • Payment History: Lenders want to see that you're responsible with your current mortgage. You'll need a history of making your payments on time, especially your current mortgage. Most lenders want to see no late mortgage payments in the last 6 to 12 months.
  • Stable Income and Employment: This is crucial for lenders to feel confident you can handle the new mortgage payments. You'll typically need to show proof of stable income over the past two years, often through W-2s, tax returns, and recent pay stubs.

Documents You'll Likely Need:

To speed up the process, have these documents ready:

  • Your ID (like a driver's license) and Social Security card.
  • Recent pay stubs (usually the last 30-60 days).
  • Your W-2 forms from the last two years.
  • Federal tax returns from the last two years.
  • Bank statements and statements for any investment accounts (usually the last 2-3 months).
  • Your current mortgage statement.
  • Your property tax statement.
  • Proof of homeowner's insurance.

Specialized Programs for Specific Needs:

  • Cash-Out Refinance: If you're looking to tap into your home equity, you'll generally need to maintain at least 20% equity after you take out the cash. Credit score requirements might also be a bit higher for these, often starting around 640-680.
  • FHA Streamline: This is a fantastic option for existing FHA borrowers. It often skips the need for a credit check, income verification, or even a new appraisal, making it super convenient.
  • VA IRRRL (Interest Rate Reduction Refinance Loan): For eligible veterans and current service members, this is another streamlined option. Like the FHA Streamline, it often bypasses credit checks and appraisals, focusing on your history of making payments on your current VA loan.

My advice from years of seeing people navigate this? Shop around! Get quotes from several different lenders. What one lender offers might be very different from what another can provide, and the best terms for your specific financial situation could be out there waiting for you.

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Cheapest Places in America to Buy a House in 2026

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If you're dreaming of homeownership in 2026, and your bank account is giving you the side-eye, I've got some good news for you. While the idea of owning a home might feel out of reach in many parts of the country, there are still remarkably affordable pockets where your money can go much further. In fact, by focusing your search on specific regions and cities, you can absolutely find a fantastic home without succumbing to sky-high prices.

Cheapest Places in America to Buy a House in 2026

As a seasoned observer of the housing market, I've seen trends come and go. The pandemic certainly shook things up, making some unexpected places boom. But as we look ahead to 2026, a clearer picture is emerging, and it signals a return to value in solid, often overlooked, communities. The cheapest places in America to buy a house in 2026 are largely concentrated in the friendly Midwest and South, where the cost of land remains reasonable and steady population growth means these areas are far from stagnant. I've spent years helping families navigate these choices, and trust me, there's a treasure trove of affordable real estate waiting to be discovered.

Where the Real Estate Bargains Are Hiding

When we talk about affordability, we're not just looking at the sticker price. It’s also about how much house you can get for your money, and how comfortably you can manage those monthly payments. Based on my research and what market watchers are predicting for 2026, certain cities are truly shining for their budget-friendly appeal.

It’s important to remember that these aren't just places with low prices; they often offer a good quality of life too. Think community events, decent job markets, and access to amenities.

Top Cities Poised for Affordability in 2026

Here's a peek at some of the cities that are consistently popping up on the radar for their impressive housing prices:

  • Granite City, Illinois: This town in the heart of Illinois is making waves, and for good reason. It's projected to have one of the lowest median home prices in the nation for 2026, setting the bar at an astonishing $119,000. For many, this could be the key to unlocking homeownership that felt impossible elsewhere.
  • Rochester, New York: Don't discount the Northeast entirely! Rochester is a standout, particularly for those stepping into the market for the first time. It's been called the #1 market for first-time buyers, with median listing prices hovering around $139,900. This city offers a blend of urban amenities with a surprisingly gentle entry point for new homeowners.
  • Decatur, Illinois: Another Illinois gem, Decatur is earning accolades for its overall affordability, even being named the most affordable place to live for the 2025–2026 period. Here, you can expect median home values well under $100,000, which is practically unheard of in today's market.
  • Birmingham, Alabama: Heading South, Birmingham is a strong contender. It's a vibrant city with a growing economy and its housing market reflects that accessibility. Expect median home prices to be around $148,950. This offers a fantastic opportunity to own property in a thriving Southern hub.
  • Akron, Ohio: Ohio is incredibly strong when it comes to affordable housing, and Akron is a prime example. Housing costs here are remarkably lower than the national average – around 48% less! With median prices often falling under $101,000, it's a smart choice for budget-conscious buyers.
  • Oklahoma City, Oklahoma: For those who prefer a larger city feel without the big-city price tag, Oklahoma City is your answer. It's recognized as the most affordable large city in the U.S. for 2026, meaning you get all the benefits of a sizable metro area without the astronomical housing costs.

The Cheapest States: A Deep Dive into Value

Looking at the state level can give you an even broader perspective. These are the places where the overall cost of living, and housing in particular, is projected to remain the most manageable through 2026.

State 2026 Median Home Price (Est.) Key Affordability Feature
West Virginia $225,506 Lowest overall housing costs
Mississippi $235,408 Lowest median monthly mortgage payments
Arkansas $239,654 Recent price drops; low property taxes
Indiana $255,311 Best price-to-income ratio
Ohio $231,798 Low insurance costs; diverse city options

My personal take on these states? They represent a return to fundamentals. You're not paying a premium for trendy status; you're paying for solid foundations, good communities, and a chance to build equity without being immediately underwater.

  • West Virginia consistently ranks at the bottom for housing costs, offering unparalleled value. It's a state rich in natural beauty and a welcoming atmosphere.
  • Mississippi is attractive for its exceptionally low mortgage payments, which can significantly ease the financial burden of homeownership.
  • Arkansas has seen some welcome price adjustments, coupled with impressively low property taxes. This combination makes it a very attractive option for long-term financial planning.
  • Indiana stands out for its exceptional price-to-income ratio, meaning that housing costs are particularly favorable compared to average earnings. This is a crucial metric for sustainable homeownership.
  • Ohio offers a fantastic mix of affordability, including lower insurance premiums, and a wide variety of cities to choose from, ensuring you can find a place that fits your lifestyle.

Emerging Markets: Where Prices Might Be Dropping

Now, this is where things get really interesting. For a few years, we saw a frenzy in certain markets as people moved in droves, driving prices sky-high. But the tides are starting to turn. I'm seeing predictions for price drops in some of these previously hot areas by 2026. This is exciting because it could create opportunities for buyers who were priced out of the market during the boom.

Florida Cities Seeing Price Adjustments

Florida, with its allure of sunshine, has also faced challenges with escalating insurance costs and the increasing realities of climate change. This is leading to some significant, albeit potentially welcome, price corrections:

  • Cape Coral: Forecasted to see a price drop of around -10.2%.
  • North Port: Expected to experience a decline of about -8.9%.
  • St. Petersburg: Also on the list of cities likely to see price decreases.

While these drops might seem concerning, for a buyer looking to get in, it could mean more bargaining power and a more stable investment as prices recalibrate.

Western Tech Hubs Cooling Down

As the remote work revolution settles and more people return to more traditional work environments, some of the tech-centric cities that experienced explosive growth are showing signs of cooling:

  • Austin, Texas: What was once an incredibly competitive market is expected to become more balanced as inventory increases and the rapid migration slows.
  • Phoenix, Arizona: Similar to Austin, Phoenix is anticipating a softening of its market, making it potentially more accessible for buyers.

These shifts don't mean these cities are suddenly cheap, but they do signal a move away from the extreme price inflation of the past few years, offering a more reasonable entry point.

My Two Cents: Beyond the Numbers

When I look at these lists, I don't just see numbers. I see communities. I see places where a young family can buy their first home, where a retiree can live comfortably on a fixed income, and where a budding artist or entrepreneur can chase their dreams without the crushing weight of exorbitant rent or mortgage payments.

My experience tells me that focusing solely on the “cheapest” can sometimes lead you to places with fewer amenities or job opportunities. The real sweet spot is finding a place that offers great value. This means looking for areas with:

  • Stable or growing job markets: Even in affordable areas, jobs are key to long-term success and stability.
  • Good schools: If you have or plan to have children, this is non-negotiable.
  • A sense of community: Affordable doesn't have to mean isolated. Look for places with active local events and friendly neighbors.
  • Access to nature or recreation: Being able to enjoy the outdoors can significantly boost your quality of life.

The data for 2026 strongly suggests that the Midwest and South are where you'll find the most bang for your buck. But within those regions, do your homework. Visit these places if you can. Talk to locals. Get a feel for the vibe. The cheapest place in America to buy a house in 2026 might just be the place that feels most like home.

Final Thoughts for the Savvy Buyer

Navigating the housing market in 2026, especially when budget is a primary concern, is all about smart strategy. The good news is that affordability is returning to many stable, character-filled communities. Don't be afraid to look beyond the headline-grabbing, uber-expensive cities. Your dream home is likely waiting for you in one of these welcoming, budget-friendly towns and cities. The key is to be informed, patient, and ready to act when you find the right opportunity.

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Mortgage Rates Today: Rates Drop Following Trump’s $200 Billion Mortgage Bond Directive

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If you’re thinking about buying a home or refinancing your current mortgage, you’re probably wondering what today’s mortgage rates are doing. Well, here’s the quick answer: they’ve taken a dip! As of Friday, January 9, 2026, we’re seeing average 30-year fixed rates drop below 6% for the first time in a while. This is a big deal, and it’s largely thanks to some recent government action.

Mortgage Rates Today: Rates Drop Following Trump’s $200 Billion Mortgage Bond Directive

It feels like just yesterday we were all talking about rates hovering in the 6%-plus range, and now seeing them officially under 6% is a breath of fresh air for many aspiring homeowners and those looking to optimize their existing loans. My own experience in this market has taught me that even small shifts can make a huge difference when you’re talking about hundreds of thousands of dollars over 30 years. The average for a 30-year fixed mortgage is currently sitting around 6.0% to 6.2%, though depending on your specific situation and the lender you choose, you might find even better deals.

What's Driving This Big Drop?

You might be asking, “How did we get here so suddenly?” The main driver behind this welcome change is a pretty bold move by the Trump administration. President Trump has directed government-sponsored enterprises, Fannie Mae and Freddie Mac, to purchase a whopping $200 billion in mortgage bonds.

Why Does Buying Mortgage Bonds Matter?

Think of it like this: when the government steps in to buy more mortgage bonds, it increases the demand for them. When demand for something goes up, its price tends to go up, and its yield (which is essentially what lenders earn) tends to go down. For us as borrowers, a lower yield on mortgage bonds translates directly into lower mortgage interest rates. It's a direct intervention aimed at making owning a home more affordable, which is fantastic news for a lot of people.

Mortgage News Daily reported a significant intraday drop to 5.99% this morning for the 30-year fixed rate, down from 6.21% just yesterday. That kind of single-day movement is rare and truly shows the market's powerful reaction to this intervention.

A Closer Look at Today's Rates

While the headline news is exciting, it’s always good to have a clearer picture of the different types of mortgages. Here's a breakdown of what we're seeing on average:

Product Average Interest Rate Average APR
30-Year Fixed 6.16% 6.22%
15-Year Fixed 5.47% 5.56%
30-Year Fixed FHA 5.80% 5.86%
30-Year Fixed VA 6.24% 6.28%

(Note: APR, or Annual Percentage Rate, typically includes fees and other costs associated with the loan, so it's usually a bit higher than the interest rate itself. It’s a more complete picture of the cost of borrowing.)

You can see that FHA loans, often used by first-time homebuyers, are also benefiting from this downward trend, coming in below the general 30-year fixed rate. VA loans, a great benefit for our veterans, are also slightly higher but still reflect the broader market movement.

What's Next? The Crystal Ball on Mortgage Rates

So, now that rates have dipped below 6%, what's the forecast for the rest of 2026? This is where things get a bit nuanced. While this recent drop is significant, most experts believe that rates won't go on a freefall. They're expected to gradually decline throughout the year.

Major housing organizations have released their year-end predictions, and they largely agree on this gradual decrease. Here’s a peek at what some of them are saying:

2026 Mortgage Rate Forecasts

Organization 2026 Year-End Prediction 2026 Q1/Q2 Outlook
Fannie Mae 5.9% 6.2% (Q1) / 6.1% (Q2)
National Association of Realtors (NAR) 6.0% 6.0% (Q1)
National Assoc. of Home Builders (NAHB) 6.2% 6.17% (Q1)
Wells Fargo 6.25% 6.15% (Q1 & Q2)
Mortgage Bankers Association (MBA) 6.4% 6.4% (Q1 & Q2)

As you can see, the consensus is that rates will likely stay in the low 6% to high 5% range for much of the year. Fannie Mae is the most optimistic with a year-end prediction of 5.9%, while others are a bit more conservative. It’s important to remember these are predictions, and the market can surprise us.

The Key Factors Shaping Tomorrow's Rates

A few major forces are at play that will continue to influence mortgage rates:

  • Government Bond Purchases: As we’ve seen, the government's plan to buy $200 billion in mortgage bonds is a powerful tool. Analysts believe this move could help keep rates around 6.0% or even lower in the short term, offering some stability.
  • The Federal Reserve's Next Moves: The Federal Reserve has been pretty active, with three rate cuts in late 2025. However, they're expected to be more cautious in 2026. The general feeling is that we might see only one additional rate cut for the entire year. This cautious approach by the Fed can put a bit of upward pressure on rates, preventing them from dropping too dramatically.
  • Economic Indicators – The Tale of Inflation and Jobs: The economy is a constant balancing act. Right now, there are ongoing concerns about inflation that’s proving a bit stubborn and a labor market that’s surprisingly strong. These factors can push rates back up a bit, preventing them from sinking too far below the 6% mark for extended periods. We’re keeping a close eye on the jobs report released today, as these numbers can really move the needle on interest rates. Last month's report showing slower-than-expected inflation certainly helped push rates down.

My Take: Is Now the Time to Buy or Refi?

From my perspective in the market, this period feels like a prime opportunity. The government intervention has created a temporary window of lower rates. If you've been on the fence about buying a home, this could be the moment to make your move. The lower interest rate means you could qualify for a larger loan amount or simply have a more manageable monthly payment.

For those looking to refinance, especially if you have an older mortgage with a rate significantly higher than today's offerings, the savings could be substantial. Even if rates only dip a bit further, locking in a rate in the high 5% or low 6% range, compared to say, 7% or 8% from a year or two ago, can save you tens of thousands of dollars over the life of your loan.

It’s also worth noting that while rates are dropping, home prices are still expected to creep up. Most experts predict home prices might rise by about 1% to 4% this year, depending on your local market. This means that the savings from lower mortgage rates might be partially offset by rising home values. So, it's a good idea to weigh both factors when making your decision.

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Lebanon, TN
🏠 Property: Baltusrol Lane #852
🛏️ Beds/Baths: 4 Bed • 2.5 Bath • 2011 sqft
💰 Price: $369,990 | Rent: $2,400
📊 Cap Rate: 5.8% | NOI: $1,789
📅 Year Built: 2024
📐 Price/Sq Ft: $184
🏙️ Neighborhood: B

VS

San Antonio, TX
🏠 Property: Salz Way
🛏️ Beds/Baths: 3 Bed • 2 Bath • 2330 sqft
💰 Price: $384,999 | Rent: $2,375
📊 Cap Rate: 4.1% | NOI: $1,324
📅 Year Built: 2019
📐 Price/Sq Ft: $166
🏙️ Neighborhood: A

Tennessee’s balanced rental vs Texas’s larger home with lower cap rate. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

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Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

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Today’s Mortgage Rates, Jan 9: Low 6% Range Persists, Experts Predict Continued Stability

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As we kick off the first full week of 2026, the news for homebuyers and homeowners looking to refinance is overwhelmingly one of stability. Today, January 9, 2026, the national average for a 30-year fixed mortgage rate hovers around 6.16%, showing very little movement from the previous week. This steadiness, while perhaps not thrilling, is actually good news for those of us watching the market, as it signals a more predictable environment for big financial decisions like buying a home.

It's a welcome change from the roller-coaster ride we experienced over the past few years. I remember just over a year ago, the average 30-year fixed was sitting at a much higher 6.93%. That’s a significant difference, and it represents hundreds of dollars in monthly savings for borrowers.

Today's Mortgage Rates, Jan 9: Low 6% Range Persists, Experts Predict Continued Stability

What the Numbers Tell Us This Week

Let's break down what the latest data from Freddie Mac and Zillow is telling us about mortgage rates on January 9, 2026.

According to Freddie Mac, which tracks average rates weekly, the 30-year fixed-rate mortgage averaged 6.16% this week, a slight increase of just one basis point (0.01%). The 15-year fixed-rate mortgage is at 5.46%, up two basis points from last week. While these are small upticks, it’s important to remember where we were a year ago: the 30-year fixed was at 6.93% and the 15-year fixed at 6.14%. This year-over-year drop of nearly three-quarters of a point for the 30-year is substantial and has clearly opened doors for more people looking to buy.

Zillow's data, which often reflects slightly more current, day-to-day rates, gives us a snapshot of popular loan options:

Current Mortgage Rates (Data – Jan 9, 2026)

Loan Type Interest Rate
30-year fixed 6.05%
20-year fixed 5.98%
15-year fixed 5.48%
5/1 ARM 6.32%
7/1 ARM 6.53%
30-year VA 5.55%
15-year VA 5.16%
5/1 VA 5.37%

Note: These are national averages and have been rounded. Rates can vary based on your credit score, down payment, and lender.

You can see from Zillow's numbers that the 30-year fixed is just slightly lower than Freddie Mac's reported average, around 6.05%. This aligns with Freddie Mac's observation that rates are “hovering close to the 6% mark.” I find these micro-differences fascinating because they highlight how individual lenders might be competing or adjusting their offerings based on their own projections and business goals.

Refinancing: Still an Attractive Option

For those of you who already own a home, the refinance market is also seeing similar stability.

Current Mortgage Refinance Rates (Data – Jan 9, 2026)

Loan Type Interest Rate
30-year fixed 6.12%
20-year fixed 5.94%
15-year fixed 5.60%
5/1 ARM 6.32%
7/1 ARM 6.45%
30-year VA 5.47%
15-year VA 5.10%
5/1 VA 5.32%

Refinancing your mortgage can be a smart move if you can secure a lower interest rate than you have now. Even a small drop can save you thousands over the life of your loan, and it can allow you to shorten your loan term or even tap into your home’s equity. The rates for refinancing are very similar to purchase rates, which is typical when the market is this stable.

What’s Driving This Stability and What's Next?

Sam Khater, Freddie Mac's Chief Economist, hit the nail on the head when he said, “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.” This is a crucial point I want to emphasize. Unlike times when rates might be high and the economy sluggish, we're seeing a healthier balance.

Here are the key factors influencing mortgage rates right now, and what I'm watching:

  • The 10-Year Treasury Yield: This is a big one. Mortgage rates are closely tied to the yields on U.S. Treasury bonds, particularly the 10-year. When these bond yields go up, mortgage rates tend to follow, and vice versa. Investors are constantly assessing the economic outlook to decide where to put their money, and this directly impacts borrowing costs.
  • Inflation Trends: The Federal Reserve's primary goal is to keep inflation in check. If inflation is cooling, the Fed is less likely to raise interest rates, which usually means mortgage rates can stay steady or even fall. We saw a peak in inflation a couple of years ago, and while it's come down, any signs of it creeping back up would concern the Fed and potentially push rates higher.
  • The Labor Market: A strong job market usually signals a healthy economy, which can sometimes put upward pressure on inflation. However, a too-hot job market can also make the Fed nervous about inflation. Conversely, some weakening in the labor market (without causing a recession) might actually be good for mortgage rates, as it could signal that inflationary pressures are easing.
  • Federal Reserve “Wait and See”: The Fed doesn't directly set mortgage rates, but its actions and pronouncements about interest rates heavily influence them. For a while now, the Fed has been signaling a pause in rate hikes, and the market has been anticipating potential cuts in the future. This “wait and see” attitude from the Fed has contributed to mortgage rates staying within a relatively tight band since late last year.

From my perspective, this period of stability is a breath of fresh air for potential buyers. The uncertainty of rapidly rising rates can be paralyzing. Now, buyers can plan with more confidence, knowing that their monthly payments are less likely to change dramatically from one week to the next. The over 20% jump in purchase applications that Freddie Mac noted is a direct result of this, and I expect that momentum to continue if rates hold steady.

Looking Ahead: The 2026 Forecast

What does the rest of 2026 hold for mortgage rates? Most experts, including those at Zillow, are predicting that rates will likely stay in the low-6% range throughout the year. There’s even a possibility they could dip below 6% if we see continued easing in inflation or some softening in the labor market.

It’s a far cry from the eye-watering peak of nearly 7.79% we saw in late 2023 for the 30-year fixed. The significant rate cuts by the Federal Reserve in late 2025 certainly helped bring us down to current levels. However, it's worth remembering that rates today are still more than double the historic low of 2.65% seen in January 2021. That period of ultra-low rates was an anomaly, and the current environment, while higher, is more reflective of a balanced economy.

As we move further into the new year, all eyes will be on upcoming economic data releases, especially the jobs report. These reports often act as catalysts for market movements. So, while stability is the theme today, it’s always wise to stay informed and agile!

🏡 Which Rental Property Would YOU Invest In?

Lebanon, TN
🏠 Property: Baltusrol Lane #852
🛏️ Beds/Baths: 4 Bed • 2.5 Bath • 2011 sqft
💰 Price: $369,990 | Rent: $2,400
📊 Cap Rate: 5.8% | NOI: $1,789
📅 Year Built: 2024
📐 Price/Sq Ft: $184
🏙️ Neighborhood: B

VS

San Antonio, TX
🏠 Property: Salz Way
🛏️ Beds/Baths: 3 Bed • 2 Bath • 2330 sqft
💰 Price: $384,999 | Rent: $2,375
📊 Cap Rate: 4.1% | NOI: $1,324
📅 Year Built: 2019
📐 Price/Sq Ft: $166
🏙️ Neighborhood: A

Tennessee’s balanced rental vs Texas’s larger home with lower cap rate. Which fits YOUR investment strategy?

We have much more inventory available than what you see on our website – Let us know about your requirement.

📈 Choose Your Winner & Contact Us Today!

Talk to a Norada investment counselor (No Obligation):

(800) 611-3060

Contact Us Now

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