January 9, 2026

Mortgage Rate Outlook for 2026

As we look ahead to 2026, many homebuyers are asking: Where will mortgage rates go next?

In a recent conversation with my local realtor partner Michael Sandoval, I shared my thoughts on the mortgage rate landscape and why 2026 may be a great time to buy, even if rates don’t get back to those unbelievably low 3% levels we saw a few years ago.

Mortgage Rates Softened in 2025

During 2025, mortgage rates softened, and we ended the year around 6%, with some VA loans even dipping below 6%.

While this may feel high to those who remember the sub-3% rates of a few years ago, historically, 6% is a normal and healthy range. Those ultra-low 3% rates were an anomaly- rare, unsustainable, and unlikely to return any time soon.

Where Rates Could Bottom Out in 2026

Looking ahead, I expect mortgage rates to find a bottom that is slightly lower than current levels, but not drastically so.

There is also pressure on the Federal Reserve to maintain lower rates to support economic stability, which could help keep borrowing costs manageable for buyers throughout the year.

Why 2026 Is Still a Great Time to Buy

Even though rates aren’t at historic lows, now is a strong time to buy. Real estate rewards time in the market, not timing the market. Stable rates, historically normal ranges, and continued buyer activity all point to opportunities for those ready to act.

For those still on the fence about buying a home, understanding that the 3% era was very unusual and that current rates are still historically great may make the decision easier and less stressful.