Mortgage Rates Moving Lower — A Positive Shift for 2026

Across the early weeks of 2026, mortgage interest rates in the U.S. have started to trend downward, offering a more encouraging environment for homebuyers, homeowners, and local partners alike. After a period of higher borrowing costs in 2024 and much of 2025, these changes reflect easing financial conditions and renewed market optimism.

Recent data show 30?year fixed mortgage rates dipping toward or even below 6%, levels not widely seen in over a year. In some national averages, 30?year rates are sitting around 5.86%, while 15?year fixed mortgages have also softened.

Why the Change Matters

For Homebuyers:
Lower mortgage rates can make homeownership more within reach by reducing monthly payments or increasing what you can afford. Even small shifts — fractions of a percentage point — translate into real savings over the life of a loan.

For Current Homeowners:
If you’ve been considering refinancing, the softer rate environment may create an opportunity to lower your monthly payment or shorten your loan term, freeing up cash for other goals like home improvements, education, or savings.

For Our Community Partners:
More favorable rate conditions can help stimulate housing market activity, supporting busy seasons for real estate professionals, builders, lenders, and the many other local businesses connected to home buying and selling. When our neighbors feel more confident about financing a home, the local economy often benefits, too.

What’s Behind the Rate Drop?

Mortgage rates are influenced by multiple market forces:

• Bond market movements and investor demand for mortgage-related securities help shape long-term borrowing costs.

• Monetary policy expectations and economic data continue to factor into rate trends.

• Recent developments around mortgage bond purchases and broader housing affordability initiatives have contributed to lower lending rates.

While rates are unlikely to return to the historically low pandemic-era levels, current trends signal greater stability and improved affordability compared with the recent past.

Looking Ahead

The housing market will continue to evolve as economic conditions and policy decisions unfold. But for now, these recent rate movements provide welcome news for many buyers and homeowners — especially in communities where homeownership dreams and financial goals are top of mind.

To learn more about how these rate changes could affect your mortgage options, reach out to one of our BankFirst Mortgage team members today.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.