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Mortgage Rates Rise to 6.11%, Third Week of Increases

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  Published in House and Home on Thursday, February 5th 2026 at 13:17 GMT by WTOP News
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WASHINGTON - The US housing market continues to grapple with rising mortgage rates, with Freddie Mac reporting today, Thursday, February 5th, 2026, that the average rate for a 30-year fixed-rate mortgage has climbed to 6.11%. This is the third consecutive week of increases, signaling a potential shift in market dynamics and raising concerns about affordability for prospective homebuyers.

The 30-year fixed-rate, the most popular mortgage option, now stands significantly higher than the 5.86% recorded a year ago. Simultaneously, the average rate for a 15-year fixed-rate mortgage also experienced an uptick, reaching 5.47%, a considerable increase from the 4.87% seen in early 2025.

These upward trends are not occurring in a vacuum. They are intrinsically linked to broader economic forces, primarily inflation and the monetary policy decisions of the Federal Reserve. Sam Khater, Freddie Mac's chief economist, explains that investors are proactively "pricing in the possibility of the Federal Reserve raising rates later this year," which is directly translating to increased mortgage rates. The expectation of tighter monetary policy--reducing the money supply and increasing borrowing costs--is thus already influencing the housing market.

The Ripple Effect on the Housing Market

The impact of rising mortgage rates is multifaceted. For potential homebuyers, each increase represents a greater financial hurdle. A higher rate means a larger monthly mortgage payment for the same loan amount. This erodes purchasing power, potentially pushing homeownership out of reach for a growing segment of the population. We're already seeing early indicators that buyer activity is slowing in some regions, particularly those previously experiencing rapid price appreciation.

Beyond individual affordability, the rising rates are beginning to influence overall housing inventory. While inventory remains historically low in many areas, some analysts predict a modest increase in available homes as higher rates dampen demand. This could lead to a stabilization, or even a slight correction, in home prices, though a dramatic price crash is generally not anticipated given the persistent underlying supply shortage.

The Federal Reserve's Role and Inflationary Pressures

The Federal Reserve's response to inflation remains the central driver of mortgage rate fluctuations. The Fed's dual mandate - price stability and maximum employment - puts it in a difficult position. While easing rates could stimulate economic growth and bolster the housing market, doing so risks reigniting inflationary pressures. Currently, the latest data suggests inflation is cooling, but remains above the Fed's target of 2%.

Experts are closely watching key economic indicators - including the Consumer Price Index (CPI), the Personal Consumption Expenditures (PCE) price index, and employment figures - to gauge the Fed's next move. A stronger-than-expected economic report could embolden the Fed to maintain its hawkish stance, leading to further rate increases. Conversely, signs of a significant economic slowdown could prompt a more dovish approach, potentially providing some relief to the housing market.

Looking Ahead: What to Expect

The consensus among economists is that mortgage rates are likely to remain elevated in the near term. While a substantial decline isn't anticipated unless inflation falls dramatically, a continuation of the current upward trajectory is also considered unlikely. Most forecasts suggest rates will likely stabilize within the 6-7% range throughout the spring buying season.

For homebuyers, this means being prepared for a competitive market with higher borrowing costs. Securing pre-approval, exploring various loan options, and being flexible with housing preferences are crucial strategies. For current homeowners, the rising rate environment could discourage refinancing, and those considering selling may need to adjust their price expectations to reflect the changing market conditions.

The housing market is a complex ecosystem, and these rising mortgage rates are just one piece of the puzzle. Supply chain issues, labor shortages in the construction industry, and demographic trends all contribute to the overall picture. Monitoring these factors will be essential for understanding the future direction of the US housing market.