At a Glance:

• The Federal Reserve held the federal funds rate steady at 3.50%–3.75% at its first meeting of 2026.
• The 10-year Treasury yield closed at 4.277% on February 2.
• President Trump has nominated Kevin Warsh as the next Federal Reserve Chair to succeed current Chair Jerome Powell when his term concludes in May 2026.
• Mortgage rates remain close to their lowest levels in three years, with 30-year fixed rates in the low 6% range.

Last week brought two notable developments from the Federal Reserve: the central bank kept the federal funds rate unchanged at its January meeting, and the White House announced a nominee for the next Federal Reserve Chair.^1,2

At its January 27–28 meeting, the Federal Reserve kept its benchmark rate steady at 3.50%–3.75%, as widely anticipated.³ In its statement, the Fed noted that economic activity continues to expand, the labor market remains stable, and inflation has eased but is still above the central bank’s longer-term goal.⁴

The 10-year Treasury yield — a key benchmark that influences mortgage rates — closed at 4.277% on February 2, showing only modest movement following the Fed’s announcement.⁵ 

This week’s Mortgage Monitor reviews how these developments are influencing mortgage rates today and provides context on the nomination of the next Federal Reserve Chair.

Mortgage Rates Remain Stable

Despite a busy economic calendar, mortgage rates showed little reaction to the Fed’s decision. Rates continue to hover near their lowest levels in three years.

As of February 2, the average rate for a 30-year fixed conforming mortgage was 6.092%, while the average rate for a 30-year fixed jumbo mortgage was 6.263%.⁶

“Mortgage rates at current levels remain favorable compared to recent years, especially heading into spring,” said Brett Hively, Senior Vice President and Mortgage Capital Markets and Financial Strategist at Ameris Bank. “While today’s stability is encouraging, rates can still move in response to inflation trends or broader economic and geopolitical conditions.”

The Next Federal Reserve Chair

Following the Federal Reserve’s January meeting, the White House announced late last week that President Trump has nominated Kevin Warsh to serve as the next Federal Reserve Chair.⁷ Warsh, who previously served on the Federal Reserve Board of Governors from 2006 to 2011, would succeed Jerome Powell when Powell’s term ends in May 2026.⁸ His nomination now moves to the Senate for consideration.

From a mortgage‑market perspective, the nomination does not signal an immediate shift in policy expectations. The Fed Chair helps shape policy discussions and communicates the Committee’s decisions, but the Chair does not set borrowing costs or mortgage rates directly.

Decisions about the federal funds rate—the short‑term rate the Fed oversees—are made collectively by the 12 voting members of the Federal Open Market Committee (FOMC), which includes Board Governors and rotating Federal Reserve Bank presidents.⁹ Because of this structure, a change in leadership does not automatically alter the path of monetary policy or meaningfully move consumer borrowing rates.

“A nomination doesn’t affect policy by itself,” Hively said. “Rate decisions will continue to follow the economic data, especially inflation and labor‑market trends.”

The Fed’s next policy meeting is scheduled for March 17–18, 2026.¹⁰


Sources:
^{1, 4} https://www.federalreserve.gov/newsevents/pressreleases/monetary20260128a.htm
^{2, 7, 8} https://www.cnbc.com/2026/01/30/trump-nominates-kevin-warsh-for-federal-reserve-chair-to-succeed-jerome-powell.html
³ https://www.reuters.com/business/fed-expected-hold-rates-steady-rate-cut-pause-begins-2026-01-28/
⁵ https://fred.stlouisfed.org/series/DGS10
⁶ https://www2.optimalblue.com/obmmi
⁹ https://www.federalreserve.gov/monetarypolicy/fomc.htm
¹⁰ https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.