According to a 2025 Goldman Sachs Research housing report, mortgage rates surged to a 20-year high in 2022 and have stayed elevated since. The average monthly mortgage payment as a share of potential home buyers’ income has risen from below 20% prior to the pandemic to a historically high ratio of over 30% since 2022.
But there may be good news. Since the Federal Reserve began cutting interest rates in September 2025, mortgage interest rates have seen a slight drop.
According to Freddie Mac, the average mortgage interest rate on a 30-year fixed-rate mortgage was 6.16% as of January 8, down from 6.93% a year ago. And the average rate on a 15-year fixed-rate mortgage was 5.46%, down from 6.14% a year ago.
When mortgage rates go down, buyer interest generally goes up. If you’ve been planning to buy a home but have been sidelined by higher rates, you may be wondering if now is a good time to buy.
According to the National Association of Realtors, many housing experts are expecting to see lower mortgage rates in 2026.
Keep in mind, however, that mortgage rates can change day to day, and the Fed’s interest rate decisions can impact the cost of borrowing. As you keep an eye on where rates fall this year, here are a couple of mortgage tools to consider.
What if mortgage rates edge up in the future? You may be able to lock in your mortgage rate to avoid any rate increases between the offer and closing. However, you must close within the specified time frame, and you cannot make any changes to your application.
Because mortgage interest rates can change every day or even every hour, with a locked rate, there won’t be surprises. You can usually get a rate lock that lasts for 30, 45, or 60 days, or longer.
Another potentially helpful tool when rates are hard to predict is a mortgage rate float-down option, which lets you lock in a rate and switch it to a lower one if it becomes available before you close the loan (this typically comes as a one-time adjustment).
However, you may have to pay a nonrefundable fee upfront, or you may have to accept pricing adjustments that can involve precise timing windows or rate-drop thresholds.
As of January 8, some mortgage rate options are hovering close to the 6% mark according to Freddie Mac, enhancing affordability:
And as of January 13, the 15-year mortgage refinance rate is 5.97% according to Bankrate’s survey of the nation’s largest refinance lenders.
This could be a window of opportunity for those looking to buy a home. If you have questions about whether this is a good time for you or whether your finances are in order to buy a home, consult a financial advisor.
This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format without the express written consent of Goldman Sachs. This foregoing restriction includes, without limitation, using, extracting, downloading or retrieving this information, in whole or in part, to train or finetune a machine learning or artificial intelligence system.
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