The average 30-year fixed mortgage rate fell to 5.94 percent this week, marking the first time rates have dropped below the six percent threshold in 2026. The decline follows softer-than-expected inflation data released last Friday.
Lenders report an immediate uptick in purchase applications and refinance inquiries as borrowers rush to lock in the lower rates. Housing economists caution that the dip may be temporary if upcoming employment data comes in strong.
Homebuyers who have been sidelined by elevated borrowing costs are now re-entering the market, particularly in mid-priced suburban markets where inventory has improved modestly this spring.
