Mortgage Interest Rates Forecast

Mortgage rates are holding just under 6%, offering a steady outlook for borrowers heading into late January. The average 30-year fixed rate edged up to 5.97% APR in the week ending Jan. 22, according to rates provided to NerdWallet by Zillow, but has remained remarkably stable over the past three weeks despite sharp day-to-day swings tied to global headlines. With the Federal Reserve widely expected to leave its benchmark rate unchanged at its Jan. 27–28 meeting, lenders don’t have much reason to push mortgage rates meaningfully higher or lower in the near term.

Volatility, however, isn’t off the table. Treasury yields jumped earlier this week amid tariff threats tied to the World Economic Forum in Davos, briefly sending mortgage rates higher before retreating once tensions eased. Looking ahead, uncertainty around President Trump’s potential pick for the next Fed chair could add fresh movement later this year. For now, borrowers who can make the math work around 6% may find this a window of opportunity — especially homeowners weighing mortgage refinancing.

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January mortgage rates forecast

Mortgage rates may remain sensitive to political and institutional uncertainty, as markets weigh questions around the Fed’s independence following recent Justice Department subpoenas involving Chair Jerome Powell.

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