Mortgage Rates Continue Descent, Hovering Near Three-Year Low
Mortgage rates have continued their downward trend, offering a glimmer of hope to prospective homebuyers and those looking to refinance. The 30-year fixed-rate mortgage averaged 6.09% as of February 17, 2026, down from 6.16% the previous week, according to Bankrate’s latest lender survey.
Current Mortgage Rate Trends
Here’s a snapshot of current mortgage rates:
- 30-year fixed: 6.09% (down from 6.25% four weeks ago, 7.00% one year ago)
- 15-year fixed: 5.47% (down from 5.53% four weeks ago, 6.24% one year ago)
- 30-year jumbo: 6.27% (down from 6.41% four weeks ago, 7.04% one year ago)
These rates include an average of 0.36 discount and origination points.
Factors Influencing Mortgage Rates
Several factors are contributing to the recent decline in mortgage rates. The Federal Reserve’s decision to hold its benchmark interest rate steady last month, as widely anticipated, has played a role. However, stronger-than-expected labor numbers released on February 11 have led to speculation that rate cuts may not be imminent.
“We could see at least one rate cut during the first half of 2026 — but if job growth rebounds, it is harder to see a path toward multiple rate cuts this year,” says Lisa Sturtevant, chief economist at Bright MLS.
Trump Administration Intervention
President Trump’s announcement directing Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities initially caused rates to dip. However, the impact has been limited. Sean Salter, a finance professor at Middle Tennessee State University, noted that the move would likely result in only a “temporary and limited reduction” in rates without broader support from the Federal Reserve or Congress.
Housing Market Conditions
The housing market is also showing signs of stabilization. Home prices have begun to decline in many previously hot markets, with half of the nation’s 50 largest metro areas experiencing price decreases over the past year, according to Zillow. Increased housing inventory is also contributing to a more balanced market.
“With more housing inventory coming online and home prices starting to level off, this remains a promising environment for those looking to buy or refinance,” says Samir Dedhia, CEO of One Real Mortgage.
Looking Ahead
Fannie Mae’s January 2026 Housing Forecast predicts that mortgage rates will remain around 6% for most of 2026 and 2027. Even as rates have fallen significantly from their peak of around 6.9% a year ago, potential homebuyers and refinancers should continue to monitor market conditions and shop around for the best available rates.
Understanding Points
Discount points are fees paid directly to the lender in exchange for a lower interest rate, while origination points are fees lenders charge to cover the costs of processing the loan.
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