Mortgage Rates Drop Below 6% for the First Time in 3.5 Years

(2/26/26)  For the first time in three and a half years, the 30-year, fixed-rate mortgage dipped below 6% this week, according to Freddie Mac. The rate averaged 5.98%, down from last week, when it averaged 6.01%.  For many buyers who have been sitting on the fences, an interest rate starting with the digit “5” is significant, and experts say the rate drop this week may incentivize them to make a move.

“This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for the spring homebuying season,” said Sam Khater, Freddie Mac’s chief economist.

A year ago, the 30-year fixed rate averaged 6.76%.

The 15-year, fixed-rate mortgage increased slightly this week, averaging 5.44% compared to last week’s 5.35%. A year ago, it averaged 5.94%.

Redfin reported today that mortgage rate drops have pushed the median U.S. monthly housing payment down to $2,599, 2.6% lower than a year ago. Wages are nearly 4% higher than they were a year ago as well, improving affordability further.

Falling rates may bring some house hunters out of the woodwork in the coming weeks, Redfin predicts. Still, prospective buyers face headwinds, such as rising home prices – up 1% year over year, according to Redfin. Americans are also jittery about economic uncertainty. And in many markets around the nation, the snowy winter has kept buyers from being active.