Mortgage rate forecast 2026: Mortgage rate to touch 5%? Is the US housing market finally waking up again? Mortgage rates slide to 6.06% — Lowest level since 2022

Mortgage rate forecast 2026: Will mortgage rates touch 5% as the US housing market finally wakes up again? US mortgage rates hit a three-year low this January 2026, dropping the 30-year fixed average to 6.06%. Data from Freddie Mac confirms a sharp decline from last year's 7.04% peak. President Trump’s recent directive for Fannie Mae and Freddie Mac to buy $200 billion in MBS has successfully crushed bond yields. This aggressive intervention has revitalized refinance applications, which surged 40% last week. Experts now predict rates could test the 5% threshold by mid-2026 if inflation holds steady.