Mortgage rates saw significant improvements in 2025, but will that continue this month? Here's what to know now.

The highest money market account rate available today is 4.22% Changes from the Fed or your bank can quickly change money market rates Online banks typically offer the most competitive yields on the market Current Money Market Rates As of today,

While homebuyers should not expect a drastic reduction in mortgage rates in the near term, rates could continue to fall through 2026. Fannie Mae predicts that mortgage rates will start off 2026 at 6.2% and drop to 5.9% by the end of the year. On the other hand, the Mortgage Bankers Association sees mortgage rates holding steady at 6.4% this year.

As of January 2, 2026, the average mortgage interest rate on a 30-year fixed mortgage is 5.99%, while the average rate on a 15-year fixed mortgage is 5.38%, according to Zillow's data. Both averages continue to hold below the 6% mark, a threshold that, not long ago, seemed out of reach given the elevated rate environment of recent years.

Redfin, a Seattle, Washington-based real estate giant, forecasts average 30-year fixed mortgage rates will remain in the low 6% range for most of 2026. "Mortgage rates will continue their slow slide but remain high relative to the pandemic era," Redfin said last month.

The highest money market account rate available today is 4.22% Changes from the Fed or your bank can quickly change money market rates Online banks typically offer the most competitive yields on the market Current Money Market Rates Right now,

Almost half of the 38 experts surveyed in the Financial Review’s first quarterly poll for 2026 reckon the next move is up, and some think it will not stop there.

Bank of Japan Governor Kazuo Ueda said on Monday the central bank will continue to raise interest rates if economic and price developments move in line with its forecasts.

The Bank of Israel trimmed its benchmark interest rate by 25 basis points to 4.00% on Monday, explaining that inflation has moderated, and the country's labor market remains tight. The bank's committee had been widely expected to keep rates unchanged.