The average 30-year fixed mortgage rate has fallen below 6 percent for the first time since October 2024, providing a welcome reprieve for prospective homebuyers who have been sidelined by elevated borrowing costs. The rate currently sits at 5.87 percent.
Economists attribute the decline to moderating inflation data and signals from the Federal Reserve that additional rate cuts remain on the table for the second half of 2026. Refinance applications have also surged in response.
Despite the improvement, housing affordability remains strained in many metropolitan areas due to persistently low inventory levels and elevated home prices.
