Mortgage rates dip but demand drops nearly 10%

Edited by Rachel Kleinman, Editor at LinkedIn News 

Would-be homebuyers were mostly unmoved as mortgage rates dipped to end 2025 and begin the new year. The number of Americans applying for mortgages decreased 9.7% for the week ended Jan. 2, 2026, while the average rate for a 30-year home loan fell from 6.32% to 6.25% — the lowest point since September 2024. Across the housing market, affordability remains a top challenge, while economic uncertainty and a stagnant job market are also sidelining potential buyers.