Mortgage Rates Dip Below 6% After Three-Year High

As inflation eases, mortgage rates fall below 6%, boosting housing market prospects for buyers and refinancers.

Mortgage Rates Fall Below 6% for First Time in More Than Three Years

Mortgage rates have dropped below 6 percent for the first time since 2022, a milestone that could give the housing market a lift after a long period of high borrowing costs. The decline comes as inflation has eased and expectations grow that the Federal Reserve may begin cutting interest rates this year.

The average rate on a 30-year fixed mortgage fell under 6 percent this week, according to Freddie Mac, which tracks national lending data. Rates had climbed above 7 percent in 2023 and stayed elevated through much of 2024, slowing home sales and keeping many buyers on the sidelines.

Lower rates reduce monthly payments and improve affordability, even as home prices in many areas remain near record highs. Analysts say the drop could bring buyers back into the market and encourage some homeowners to refinance. Rates are still well above the pandemic lows below 3 percent, and economists say future moves will depend on inflation and overall economic conditions.