Mortgage Rates Seen Steady for Foreseeable Future as Fed Stays Put Amid Focus on Labor Market, Redfin Says

03:22 PM EST, 02/13/2026 (MT Newswires) -- Mortgage rates are expected to remain largely steady for the foreseeable future, with the Federal Reserve seen holding its monetary policy steady as it focuses on the labor market amid receding inflation risks, Redfin said Friday.

Bureau of Labor Statistics data showed earlier in the day that US consumer inflation eased in January, with core price growth marking the slowest pace in nearly five years.

The data suggest there is little risk of prices rebounding in 2026, while the remaining excess inflation above the Fed's 2% goal is likely to "resolve itself" as tariff effects pass through, Redfin said in a report.

"The Fed is now solidly focused on the labor market and likely to hold rates steady with just two cuts in the back half of the year," Chen Zhao, the head of economics research at Redfin, said. "That means mortgage rates are unlikely to move up or down much for the foreseeable future barring unexpected economic data."

On Thursday, the National Association of Realtors said the average 30-year fixed-rate mortgage fell to 6.10% last month from 6.19% in December and 6.96% a year earlier, according to Freddie Mac data.

Markets widely expect the US central bank to leave its benchmark lending rate unchanged for the second consecutive policy meeting in March, according to the CME FedWatch tool. Prior to last month's pause, the Fed delivered three back-to-back 25-basis-point interest rate cuts amid concerns about the labor market.

Earlier this week, official data showed the US economy added more jobs than projected in January, while the unemployment rate slipped.

However, earlier labor market reports were grim, with Challenger Gray & Christmas saying last week that last month's job cut announcements in the US soared to the highest since October. ADP (ADP) recently reported that employment in the private sector increased less than projected last month.

The NAR report showed Thursday that existing home sales in the US fell more than expected in January as the median price hit a new peak for the month amid low supply even as affordability improved.

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