Interest Rate Drop

January 17, 2026

Big update I’m watching closely: mortgage rates briefly dipped below 6%, with some buyers seeing quotes around 5.99% on a 30-year fixed. The 15-year has also come down into the mid-5s in some cases. This kind of drop tends to change the “feel” of the market fast, even if it ends up being temporary.

Here’s how I’m reading it as a Realtor:

This is not a guaranteed new normal, but it is a real window. A move under 6% is a psychological switch for a lot of buyers who have been waiting. When buyers think payments might finally be reasonable again, they start touring homes and making decisions.

What this means right now

For buyers

  • Your monthly payment may be noticeably lower than it was a few months ago, especially at higher price points.

  • Some buyers who were priced out may now qualify again, or qualify more comfortably.

  • If you paused your search, this is a good moment to re-check your numbers with your lender and see what’s possible.

For sellers

  • Rate drops typically bring more buyers back into the pool, which can mean more showings and stronger offer activity on homes that are priced well and presented well.

  • This is also a great time to use smart terms instead of another price reduction. Things like covering a portion of closing costs or offering a temporary rate buydown can make your listing feel more affordable without changing your headline price.

  • Well-positioned homes benefit first. Condition, staging, photos, and pricing still matter a lot.

What I’d do this weekend if you’re active in the market

  • Buyers: Ask your lender to rerun the payment on the homes you liked. A small rate move can turn “not yet” into “we can do this.”

  • Sellers: If you’ve been on the fence, this is a strong moment to talk strategy. More buyer confidence usually equals better results, but only if the home is launched correctly.

Important context: lower rates alone won’t “fix” affordability, and they won’t instantly convince every homeowner with a 3–4% rate to sell. But they do create momentum, and momentum is often what gets homes under contract.

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