How low are mortgage rates right now compared to last year?

As of mid-January 2026, the 30-year fixed mortgage rate averaged 6.06% according to Freddie Mac, down nearly a full percentage point from 7.04% at the same time in 2025. This represents the lowest level since September 2022. For a buyer financing $500,000, this rate drop translates to approximately $330 less per month in principal and interest payments.

Are Reno-Sparks home prices going to drop because of lower rates?

Most economists forecast continued modest price appreciation of 1-3% nationally in 2026, not price declines. In Reno-Sparks specifically, the December 2025 median sale price was $549,000, up 5.2% from the prior year according to Redfin. Strong California migration and limited new construction continue supporting Northern Nevada values even as national markets moderate.

Should I buy now or wait for rates to drop further?

Fannie Mae forecasts rates staying around 6% through 2026 and 2027, and significant further drops are not expected. Meanwhile, the Mortgage Bankers Association reports purchase applications recently jumped 16%, indicating buyer competition is intensifying. Waiting for lower rates while more buyers enter the market could mean facing multiple offers on desirable properties.

What does the lock-in effect mean for Reno sellers?

The lock-in effect describes homeowners' reluctance to sell and give up ultra-low pandemic-era mortgage rates. According to Realtor.com, the share of mortgages above 6% has now surpassed those below 3% for the first time, signaling this effect is easing. For Reno sellers, this may mean more inventory entering the market in 2026.

Are there down payment assistance programs available in Nevada?

Yes. Nevada's Home Is Possible program offers up to 4% of your loan amount for down payment and closing costs, forgivable after three years. The Home First program provides up to $15,000 in down payment support for qualifying first-time buyers. FHA loans remain available with down payments as low as 3.5%.

How will lower rates affect my ability to qualify for a mortgage?

Lower rates directly improve affordability and qualification. The monthly payment difference between 7% and 6% on a $500,000 loan is approximately $330. This difference can improve debt-to-income ratios, potentially allowing buyers to qualify for larger loan amounts or more easily meet lender requirements.

Is spring 2026 a good time to list my Reno-Sparks home?

Multiple indicators suggest favorable conditions. Freddie Mac's chief economist noted housing activity is improving ahead of the spring season. December 2025 sales were reported as the strongest in nearly three years, indicating increasing buyer demand at improved rate levels.

How do current rates compare to what is considered historically normal?

Rates around 6% align with long-term historical averages. The ultra-low 3% rates of 2020-2021 were anomalies driven by emergency Federal Reserve pandemic measures. Mortgage rates averaged between 6% and 8% through much of the 1990s and 2000s, making current levels historically typical rather than elevated.

Author: [email protected]

Kevin was born and raised in Reno and graduated from UNR. He started his career as a lawyer in Oregon in 1995. He returned to Reno and transitioned to real estate in 2020. Kevin has a unique skillset that provides unparalleled skills in all levels of negotiations and positive results driven solutions. He understands what it means to have a client trust his skills and strives each day to exceed those expectations. He is passionate about helping people achieve their real estate goals. He believes that everyone deserves to have a safe and comfortable place to live and is committed to providing clients with the best possible service.

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