Podcast Summary: Your Money Minute

Episode: Lowest Mortgage Rate In 3 Years 1/20/26
Date: January 20, 2026
Host: Jessica Ettinger, CNBC
Guest Expert: Stephen Scherr, CEO of Pretium

Overview

This quick episode focuses on a significant drop in U.S. mortgage rates, falling to their lowest in three years as of January 2026. Host Jessica Ettinger explains what this new rate means for aspiring homeowners and includes expert insight from Stephen Scherr of Pretium, who provides important context on the real challenges facing buyers in today’s housing market.

Key Discussion Points & Insights

1. Record Low Mortgage Rates (00:00–00:45)

• Headline: The average rate on a 30-year fixed mortgage dropped sharply to 5.99% (as of January 9).
• Historical Context:
  • It's the lowest since early February 2023.
  • Homebuyers "hadn't seen a 30 year mortgage rate with a 5 handle since the Biden administration."

  Jessica Ettinger: “Would be Homebuyers got their wish with lower mortgage rates on Friday, January 9, the lowest in three years, the average rate on the popular 30 year fixed mortgage dropped sharply to 5.99% and it hasn't been that low since the start of February 2023, according to Mortgage News Daily.” (00:06)

  “Homebuyers hadn't seen a 30 year mortgage rate with a 5 handle since the Biden administration. So 5.99% was a welcome sight.” (00:26)

2. Mortgage Rates Are Only Part of the Story (00:45–01:09)

• Expert Insight: Stephen Scherr, CEO of Pretium, offers a reality check:
  • Major Barrier: More than half of U.S. adults don’t qualify for a mortgage, despite lower rates.
  • Cost Differential: Owning a home is still about 40% more expensive than renting.
  • Contributing Costs: Insurance, property taxes, and other factors make homeownership expensive beyond just the mortgage rate.
  • Key Quote:

    Stephen Scherr: “More than half of the adult population in the United States would not qualify for a mortgage right now. To own a home is about 40% more expensive relative to rent a home. And it's not only because of mortgage rates. It's because of insurance. It's because of property taxes. There's a whole slew of inputs that run into this mortgage is a big issue. Okay, make no mistake, but it's one of many.” (00:45)

Notable Quotes & Memorable Moments

• Jessica Ettinger (00:06):
  “Would be Homebuyers got their wish with lower mortgage rates on Friday, January 9… the lowest in three years.”
• Jessica Ettinger (00:26):
  “Homebuyers hadn't seen a 30 year mortgage rate with a 5 handle since the Biden administration. So 5.99% was a welcome sight.”
• Stephen Scherr (00:45):
  “More than half of the adult population in the United States would not qualify for a mortgage right now…[homeownership] is about 40% more expensive relative to rent a home … mortgage is a big issue, okay, make no mistake, but it's one of many.”

Takeaways

• The drop to a 5.99% mortgage rate is significant but doesn’t automatically make homeownership more accessible.
• Qualifying for a mortgage remains out of reach for many due to stricter lending standards and higher costs beyond the rate itself (insurance, taxes, etc.).
• Renting, in many cases, continues to be the more affordable option compared to owning.
• For more coverage, listeners are directed to CNBC.com.

Further Information:
More detailed analysis and related content are available on CNBC.com.