Fed leaves rates unchanged – Trump nominated a new Fed Chairman – The Federal Reserve ended its January Open Market Committee Meeting (FOMC) on Wednesday and elected to leave interest rates unchanged. While many investors were not surprised due to comments from Fed Chairman Powell and other Fed members, it was a reversal in direction from a ¼% rate drop at its previous three meetings. Powell stated after the meeting that inflation remained elevated but that they felt that it was tariff-related, not demand-driven, an indication that he was not feeling that the economy was heating up. He also said that they felt the labor market was stabilizing. It had suffered its worst year in job gains and the highest unemployment rate since COVID. On Friday, President Trump nominated Kevin Warsh to succeed Jerome Powell as the next Fed Chairman. Powell’s term ends in May.
The Dow Jones Industrial Average closed the week at 48,892.47, down 0.4% from 49,098.71 last week. It is already up 1.7% from 48,063.29 on December 31, 2025. The S&P 500 closed the week at 6,939.03, up 0.3% from 6,915.71 last week. The S&P is up 1.4% from 6,845.50 on December 31, 2025. The Nasdaq closed the week at 23,461.82, down 0.2% from 23,501.24 last week. It is up 0.9% from 23,241.99 on December 31, 2024.
The 10-year treasury bond closed the week yielding 4.26%, up slightly from 4.24% last week. The 30-year treasury bond yield ended the week at 4.87%, up from 4.82% last week. We watch bond yields because mortgage rates follow bond yields.
Mortgage rates – Every Thursday, Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of January 29, 2026, were as follows: The 30-year fixed mortgage rate was 6.1%, almost unchanged from 6.09% last week. The 15-year fixed was 5.49%, up from 5.38% last week.
The graph below shows the trajectory of mortgage rates over the past year.
Have a Great Weekend!