Stop Waiting for Lower Mortgage Rates: The ‘New Normal’ of 6% Explained
Written by
Martin Dasko
Edited by
Levi Leidy
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According to a new analysis from Realtor.com, the number of American homeowners with mortgage rates above 6% has exceeded those with rates below 3%. In the third quarter of 2025, 21.2% of outstanding mortgages had rates of 6% or higher, while 20% had rates below 3%. While the pandemic era saw historically low rates, the report found that rates have remained above 6% since September 2022. Even though mortgage rates have dropped from the peak of 7.04% in January 2025, it’s evident that they’ll be hovering around 6% for the time being.
GOBankingRates consulted with real estate professionals to dive into the “new normal” of 6% mortgage rates and why people shouldn’t expect them to go down anytime soon, especially based on current economic conditions and future trends.
Why Are 6% Mortgage Rates Here To Stay?
Here are the main reasons why 6% is now the standard.
Economic Conditions Have Forced Interest Rates To Remain High
“Today’s mortgage rates are influenced by the economy’s current state rather than the recent turmoil in the markets,” remarked Jonathan Ayala, a real estate expert and the founder of a Real Estate Photography company. “The current rate environment is no longer one with ultra-low rates, as inflation, the strength of the labor market and long-term bond yields have altered the expectations in the economy.”
The harsh reality is that the current rates reflect the current economic environment. While aggressive economic stimulus was required during the pandemic, the economy is in a different situation now, and it doesn’t look like lower rates will return in 2026.
Inflation Remains High
Jeff Lichtenstein, a broker and CEO of Echo Fine Properties, Boca Raton, cited inflation and higher costs as the key drivers of current interest rates. He believes that to combat rampant inflation, the Fed can’t drop interest rates much further because such a move could overheat the market and bring prices back up again.
Ayala agreed that, given current economic conditions, rates are unlikely to decline further until inflation is fully contained and central banks make a substantial policy shift. If inflation doesn’t cool down in 2026, then it doesn’t appear that mortgage rates will come down either.
Low Rates Were Never Meant To Last
“If you are hoping rates drop back to 3%, it’s important to understand that those levels were never meant to last,” remarked Jake Vehige, the president of mortgage lending at Neighbors Bank. “Mortgage rates in the 6% range are historically normal, and they match today’s economic reality.” While rates may continue to drop slightly in 2026, most experts don’t expect meaningful declines anytime soon.
“Given that rates have moved little over the past three years and there’s no indication that conditions will change in the near future, 6% rates are something you should get used to,” remarked Melanie Musson, a finance expert with Quote.com.
The general consensus is that 6% rates are here to stay. While homeowners may have been spoiled by lower borrowing costs, they must accept that these conditions are no longer the same.
Future Trends Indicate Slower Rate Cuts
The Fed has indicated it won’t cut rates again for a while after cutting them three times in a row in 2025. An article on CNN reported that after the release of the December jobs report, analysts are forecasting only two rate cuts in 2026 (June and September). It’s also believed that the rate cuts will be slow and gradual. This trend indicates that mortgage rates will remain around 6% for the foreseeable future.
Lichtenstein added, “The administration is obviously fighting with the Fed and wants the Fed to lower interest rates, and if the administration has autonomy over the Fed, perhaps it will change rules like the 10-year yield being a factor in mortgage rates.” That’s the only way he sees mortgage rates falling much below 6%.
How Can You Lower Your Rates?
If you’re looking to get your rates as low as possible, you have options too.
Focus on Variables You Can Control
Ayala advises buyers to focus on variables they can control. “Credit scores can be improved, debts can be paid off and shopping around to different lenders can be done to provide meaningful results,” he explained. Buyers may have to be more patient in 2026, but it’s generally advisable to focus on securing a reasonable rate you can refinance in the future rather than putting your life on hold.
Work on Improving Your Finances
If you want to keep your interest rates as low as possible, you should focus on trying to maintain a high credit score. “Pay your bills on time, don’t borrow more than half of your credit limit and check your credit report for issues,” Musson explained. All that you can do is improve your financial situation to improve your mortgage application so that you get the best possible rate that’s available.
Take Advantage of Underused Programs
Vehige noted that one of the biggest advantages buyers have is access to underused loan products and assistance programs. He added, “FHA, USDA and VA loans can dramatically reduce or even eliminate down payments. Down payment assistance programs, many of which reset funding early in the year, can also reduce upfront costs.” He also observed that many buyers don’t explore this option because they’re unsure of what to ask, and lenders don’t bring them up.
It’s crucial that potential homebuyers shop around for interest rates by exploring all their options, as rates can vary slightly between lenders. When you’re borrowing as much as a house costs, even a small difference can equal hundreds of dollars in monthly savings.
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