Mortgage Rates Hold Steady Near 6.1% Following Fed Chair Nomination

Mortgage interest rates edged up only slightly this week, remaining largely unchanged even after President Donald Trump announced his nominee for the next Federal Reserve chair.

The average rate for a 30-year fixed mortgage rose to 6.11% for the week ending February 5, according to Freddie Mac. That’s just a hair above last week’s 6.10%, and well below the 6.89% average seen during the same time last year.

In other words, rates are still hovering near their lowest point in years.

Freddie Mac Chief Economist Sam Khater noted that recent stability is encouraging as the spring homebuying season approaches.

He explained that a mix of improving affordability and a growing number of homes for sale is creating more favorable conditions for both buyers and sellers.

Why the Fed Chair Nomination Matters to Mortgage Rates

Trump’s nomination of Kevin Warsh to replace Jerome Powell as Federal Reserve chair has brought renewed attention to how leadership at the Fed influences financial markets.

Warsh previously served as a Federal Reserve governor from 2006 to 2011, a period that included the global financial crisis and the Great Recession.

According to Realtor.com® Senior Economist Anthony Smith, the announcement has prompted investors to focus closely on the Fed’s independence and long-term policy direction.

Even before the nomination, Trump had been vocal about wanting a Fed chair who would push for significantly lower interest rates as part of a strategy to address housing affordability.

The Fed Doesn’t Set Mortgage Rates Directly

Although the Federal Reserve controls short-term interest rates, mortgage rates are shaped mostly by long-term bond yields and investor expectations.

Mortgage rates tend to track the 10-year Treasury yield, which reflects:

• Inflation outlook

• Economic growth

• Market confidence in future policy decisions

Smith warns that if investors begin to doubt the Fed’s independence or its commitment to controlling inflation, long-term yields could rise—even if the Fed is cutting short-term rates.

This creates a paradox: political pressure for lower rates can sometimes push mortgage rates higher instead of lower.

What Really Drives Housing Affordability

Mortgage rates are only one piece of the affordability puzzle.

Other key factors include:

• Wage growth

• Inflation levels

• Job market stability

When inflation is under control and employment remains strong, families are more likely to feel confident about buying or upgrading a home.

Smith emphasized that long-term affordability depends on a Federal Reserve that maintains credibility in its dual mission: keeping prices stable while supporting maximum employment.

How Mortgage Rates Are Calculated

Mortgage rates are influenced by both economic conditions and individual borrower profiles.

On the market side, lenders look closely at the 10-year Treasury yield and broader signals about inflation and economic health. Rising inflation expectations usually push rates higher, while weaker economic data can bring them down.

On the personal side, lenders evaluate your financial risk, including:

• Credit score

• Loan amount

• Down payment size

• Property type

• Loan term

Borrowers with stronger financial profiles typically qualify for lower interest rates, while higher-risk borrowers are offered higher rates.

How Your Credit Score Affects Your Mortgage Rate

Your credit score plays a major role in determining both whether you qualify for a mortgage and what interest rate you’ll receive.

General benchmarks include:

• 500–619: May qualify for certain government-backed loans, such as FHA programs

• 620: Considered “fair” credit

• 740 and above: Usually qualifies for the best available rates

Different loan programs and lenders have their own requirements, and some apply stricter standards to reduce risk.

Lenders want to be confident that borrowers can repay the loan, so stronger credit histories typically translate into lower borrowing costs.

Bottom Line

Despite political headlines, mortgage rates have barely moved and remain near recent lows. The tiny uptick to 6.11% reflects market caution rather than a major shift in direction.

For buyers and sellers heading into the spring market, stability—not dramatic change—is the real story.