Jan 9: 🚀 HUGE RATE DROP: We Just Went Under 6%!

When Rates Drop 22 Basis Points Overnight, You Pay Attention

Author

Alex Veytsman
January 09, 2026

🎉 The Lending Letter 🏡

Rates Just Took a Dive—Did You See That?!

Happy Friday! ☕ Hope you're ready for the weekend because we've got some NEWS that'll make your morning coffee taste even better. Remember yesterday when we said rates were being stubborn? Well, they just did a complete 180. 🎢

📊 TODAY'S 30-YEAR FIXED RATE
5.99%
⬇️ DOWN 0.22% from yesterday!
According to Mortgage News Daily | As of 01/09/26

🚀 Holy Rate Drop, Batman!

So here's what happened overnight: rates just dropped 22 basis points. That's not a typo. That's not a drill. That's a legitimate "spit out your coffee" kind of morning. 😱

To put this in perspective, we haven't seen a single-day drop like this in months. We're talking about rates that just fell BELOW 6% for the first time in what feels like forever. It's like finding out your favorite restaurant is suddenly running half-off specials—except this special could save you tens of thousands of dollars over the life of a loan. 💰

What caused it? The latest economic data came in cooler than expected, which made the bond market collectively exhale. Treasury yields dropped, and mortgage rates followed like a loyal puppy. 🐕

🎯 What This Means for YOU

If you've been sitting on the fence about buying or refinancing, today is your wake-up call. Rates this low won't stick around forever—they're like that friend who only comes to town for the weekend. You need to catch them while you can. ⏰

Quick Math Time: On a $400,000 loan, dropping from 6.21% to 5.99% saves you roughly $52/month. That's $624 per year. That's $18,720 over 30 years. That's... a really nice vacation. Or a new car. Or a down payment on another property if you're feeling spicy. 🌶️

💰 Lender Promos: Strike While the Iron's HOT

🏠 Ready to Lock This Rate? Whether you're buying your first home or your fifth, fill out this quick form and we'll connect you with lenders who can move FAST. When rates drop like this, you want to be ready to pounce.

🏢 Investment Property Hunters? Friday rate drops are the universe telling you to make moves. Connect with investment specialists here who understand that cash flow just got a whole lot sexier at 5.99%. 📈

🏖️ STR Investors, Pay Attention! Lower rates = better cash flow = higher ROI on your Airbnb empire. Get connected with STR loan specialists who know exactly how to maximize this rate environment for short-term rentals.

🧠 Educational Corner: The Psychology of Rate Shopping

Let's talk about something nobody discusses: why most people completely screw up rate shopping. 🎭

Here's what typically happens: Rates drop, people get excited, they call ONE lender (usually their bank), get a quote, and think they're done. But here's the thing—Freddie Mac research shows that borrowers who get quotes from just one lender pay an average of $1,500 more over the life of their loan compared to those who shop around.

💡 The Smart Shopping Strategy

Step 1: Get Multiple Quotes in 14 Days
According to FICO scoring models, multiple mortgage inquiries within 14 days count as ONE inquiry. Translation: shop your heart out for two weeks without tanking your credit score. It's like a free pass to be picky. 🎟️

Step 2: Compare the Right Thing
Don't just look at the interest rate—look at the APR (Annual Percentage Rate). The APR includes fees and gives you the REAL cost of the loan. A 5.99% rate with $8,000 in fees might actually cost more than a 6.05% rate with $2,000 in fees. The Consumer Financial Protection Bureau has a great breakdown on this.

Step 3: Ask About Rate Locks
On days like today when rates drop significantly, you want to lock ASAP. Most lenders offer 30-60 day rate locks. Some charge for locks, some don't. Ask explicitly: "Is there a fee to lock this rate, and for how long?" 🔒

Pro Move: Use our form to get matched with multiple lenders simultaneously. We send your info to several lenders at once, so you get competitive quotes without having to call around like it's 1995. Work smarter, not harder. 🧠

🏘️ For Real Estate Investors: Why Friday Matters

Friday rate drops are actually significant from a strategic standpoint. Here's why: 📊

The Weekend Window
Sellers who've had their properties listed all week without success are about to spend the weekend thinking about their situation. If you come in Monday morning with a strong offer backed by financing at sub-6% rates? That's powerful positioning. Plus, most of your competition is sleeping through this opportunity. 😴

Cash Flow Just Got Real
Let's run some investment math. On a $300,000 investment property:

  • At 6.50%: Monthly P&I = $1,896
  • At 5.99%: Monthly P&I = $1,798
  • Difference: $98/month = $1,176/year = $35,280 over 30 years

That extra $98/month goes straight to your cash-on-cash return. According to BiggerPockets analysis, even small rate differences can be the difference between mediocre and excellent cash flow. Ready to lock in these rates for your next property? Get matched with investment specialists here. 💼

STR Strategy Alert 🚨
For short-term rental investors, lower carrying costs = more flexibility on pricing = higher occupancy rates = better reviews = algorithm boost = more bookings. It's a beautiful cycle. If you're running STRs or planning to start, talk to our STR specialists about how today's rates impact your market specifically.

Level Up Your STR Game:

🎓 Personal Finance Hack: The Prepayment Velocity Strategy

🚀 Want to Pay Off Your Mortgage in 20 Years Instead of 30?

Here's a strategy that's absurdly simple but criminally underutilized: the biweekly payment hack. 💪

How It Works: Instead of making 12 monthly payments per year, you make 26 half-payments (biweekly). Sounds the same, right? WRONG. You're actually making 13 full payments per year instead of 12.

The Math That'll Blow Your Mind:
On a $400,000 mortgage at 5.99%:

  • Traditional 30-year: $2,396/month, total interest paid = $462,560
  • Biweekly payments: $1,198 every 2 weeks, loan paid off in 25.5 years, total interest = $378,420
  • Savings: $84,140 and you're mortgage-free 4.5 years earlier 🎉

According to Bankrate's calculator, this strategy works because you're hitting the principal harder and more frequently, which reduces the amount of interest that compounds.

The Catch (There's Always One): Some lenders charge fees for biweekly payment programs. Don't pay for this! Instead, just make one extra payment per year on your own. Divide your monthly payment by 12, add that amount to each monthly payment, and boom—same effect, zero fees.

Example: $2,396/month ÷ 12 = $200. Pay $2,596/month instead. You won't even notice the difference after a month or two, but your 65-year-old self will thank you profusely. 👴

Advanced Play: With today's rate drop to 5.99%, you might be saving money compared to what you were pre-approved for last month. Take those savings and immediately throw them at principal. If you were budgeting for a $2,500 payment but only need $2,396, add that extra $104 to principal every month. Compound that strategy over 30 years and you'll shave years off your mortgage.

📊 Market Intel: What's Driving Today's Drop

Let's get nerdy for a second and talk about WHY this happened: 🤓

The Economic Data Dump
This week brought several key economic indicators, and they all pointed in the same direction: cooling. Inflation data came in softer than expected, which makes the Federal Reserve's job easier. When the Fed isn't worried about overheating inflation, bonds relax, yields drop, and mortgage rates follow suit.

The Treasury Connection
Mortgage rates don't follow the Fed Funds Rate directly—they follow the 10-year Treasury yield. And that yield just took a nosedive based on the expectation that the Fed might be done with rate hikes for the foreseeable future. Bond traders are basically betting that we've seen the peak of this rate cycle. 📉

What Happens Next?
Nobody has a crystal ball (despite what that guy on Twitter claims), but here's what we're watching:

  • Next week's inflation reports
  • Fed meeting minutes
  • Employment data
  • Any global economic surprises (because there are always surprises)

The takeaway? Enjoy today's rates, but don't assume they'll stay here forever. The mortgage market is more volatile than your ex's mood swings. If you're in a position to lock today, seriously consider it. 🔐

🎯 Should You Refinance?

If you closed on a mortgage in the last 6-12 months, your Spidey-senses are probably tingling right now. Should you refinance? Let's break it down: 🕷️

The 1% Rule (Kind Of):
Traditional wisdom says refinancing makes sense when you can drop your rate by at least 1%. But that's outdated thinking. According to modern refinance calculators, it depends on:

  • Your current rate vs. today's rate (obviously)
  • Closing costs (typically 2-5% of loan amount)
  • How long you plan to stay in the home
  • Whether you can roll costs into the loan or pay out of pocket

Quick Refi Math:
If you're currently at 6.75% and can drop to 5.99%, on a $400,000 balance:

  • Monthly savings: ~$185
  • Closing costs: ~$8,000-$10,000
  • Break-even point: 43-54 months (3.5-4.5 years)

If you're staying in the house longer than 4 years, this is a no-brainer. If you're planning to move soon, maybe skip it. Want someone to run your specific numbers? Connect with lenders here who can tell you exactly whether refinancing makes sense for your situation. No guessing required. ✅

🌟 Weekend Action Plan

Okay, it's Friday, you're probably already mentally checked out for the weekend, but before you go, here's what you should actually DO with this information: 📝

🎯 Your Friday To-Do List:

1. If You're Pre-Approved But Haven't Found a House:
Call your lender and ask if your pre-approval rate can be updated to reflect today's drop. Some lenders will do this automatically, others won't. One phone call could save you thousands. Or just fill out this form and let us handle the shopping for you.

2. If You're Currently Shopping:
This is your power play. Sellers are about to spend the weekend wondering why their house hasn't sold. Monday morning, you show up with an offer backed by sub-6% financing. That's leverage, baby. 💪

3. If You're Considering Investment Property:
Run the numbers again with 5.99% instead of whatever you were using before. Cash flow just got better, which means more deals pencil out. Talk to investment specialists who can help you capitalize on this.

4. If You Have a Recent Mortgage (6 months or less):
You're probably kicking yourself right now. Take a deep breath. Run a refinance calculator. If the numbers work, start the process. If they don't, remember: you can refinance anytime rates drop significantly. This won't be your only chance.

5. If You're Just Lurking and Not Sure:
That's fine! But at least get pre-approved so you're READY when you find the right property. Markets move fast, and you don't want to miss out on the perfect place because you weren't ready to move. Start here—it takes like 10 minutes and costs nothing.

🏁 The Bottom Line

Friday, January 9th, 2026, will go down as one of those "where were you when rates dropped below 6%" days. Okay, maybe that's dramatic, but seriously—this is significant. 🎊

We're looking at rates we haven't seen in months, combined with a housing market that's starting to balance out between buyers and sellers. According to NAR data, this is actually one of the more rational market conditions we've seen in years. Not too hot, not too cold—just right for people who want to make smart, strategic moves. 🐻

Whether you're buying your first home, refinancing your current one, or building a real estate empire one property at a time, today's rate environment is offering you an opportunity. The question is: will you take it? ⚡

Remember: the best time to buy real estate was 10 years ago. The second best time is when the numbers make sense. And right now? The numbers are making A LOT more sense than they did yesterday. 📊

Enjoy your weekend, keep an eye on these rates, and we'll see you back here tomorrow with more mortgage market madness. (Just kidding, we take Sundays off. We'll see you SATURDAY for another dose of rate updates!) 😎

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Disclaimer: This newsletter is for informational and entertainment purposes only. Rates and terms vary by lender, borrower qualifications, and market conditions. Today's rates are based on the best available data at time of publication but can change throughout the day. Always consult with licensed mortgage professionals for your specific situation. Investment strategies discussed should be evaluated with financial advisors and tax professionals.