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 since early January. The decline follows softer-than-expected inflation data and signals from the Federal Reserve that additional rate cuts remain on the table.
Lenders report an immediate uptick in both purchase applications and refinance inquiries. Borrowers who locked in rates above seven percent last year are now exploring whether refinancing makes financial sense given closing costs and remaining loan terms.
Housing economists caution that rates could bounce back if upcoming employment data comes in stronger than expected.
