Mortgage-purchase applications rise with lower mortgage rates
Mortgage-purchase applications rose 5% week over week to their highest level in three years. U.S. pending home sales fell 2.9% year over year during the four weeks ending with Jan. 18, 2026, the smallest decline in over a month, as mortgage rates lessened. The weekly average mortgage rate dropped to a three-year low of 6.06% last week and lower mortgage rates have brought the median U.S. monthly housing payment down to $2,441, a 6.3% decline from this time in 2025.
“Buyers have much more power than they’ve had over the past few years,” said Ben Ambroch, a Redfin Premier agent in Milwaukee. “A lot of buyers are giving up a 3% mortgage rate for a 6% rate, so they have high standards for their new home. Buyers are negotiating prices and asking for repairs based on inspections. Sellers are more willing to compromise because listings have been sitting on the market longer; the sellers who need to move are eager to get a deal done.”
