Month-to-month prices have already eased. Utilizing a December common mortgage fee of 6.2% and a 20% down fee assumption, Zillow places the standard fee at $2,337 – $92 lower than a yr earlier and $177 beneath the October 2023 peak.
Nevertheless, the 20% down fee itself stays a hurdle: on a $359,078 residence, that meant practically $71,800 in money, rising above $73,000 if Zillow’s appreciation forecast held.
Different indicators have echoed a gradual flip. Freddie Mac’s newest Major Mortgage Market Survey confirmed the typical 30‑yr mounted fee at 6.06% in mid‑January 2026, down from 7.04% a yr earlier.
First American chief economist Mark Fleming struck an identical notice of cautious optimism. “Affordability stays difficult, however for the primary time in a number of years, the underlying forces are lastly aligned towards gradual enchancment,” he mentioned.
“Mortgage charges could drift down solely slowly, however revenue progress exceeding home value appreciation will present a lift to house-buying energy – even in a higher-rate world.”
