U.S. Mortgage Rates Fall Below 6% for First Time in Over 3 Years

U.S. mortgage rates fell below 6 percent for the first time in more than three years this week, offering potential relief to prospective homebuyers amid a prolonged slowdown in the housing market.

The average rate on a 30-year fixed-rate mortgage dropped to 5.98 percent, according to Freddie Mac, the government-sponsored enterprise that tracks mortgage trends. This marks the lowest level since September 2022 and represents a decline from 6.01 percent the previous week and 6.76 percent during the same period a year earlier. The 15-year fixed-rate mortgage averaged 5.44 percent, down from 5.94 percent a year ago. The dip follows a broader downward trend in long-term interest rates, influenced by a decline in the benchmark 10-year Treasury yield, which stood at 4.02 percent on Thursday, compared with 4.07 percent a week prior.

Economists described the threshold of 6 percent as a psychological milestone that could encourage more activity in the spring homebuying season, though they emphasized that deeper challenges persist. "This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market," said Sam Khater,...