The average 30-year fixed mortgage rate has fallen below 6% for the first time since September 2022, reaching 5.87% according to Freddie Mac's weekly survey, reigniting buyer demand across the country.

What's Driving the Drop

Three consecutive Federal Reserve rate cuts and moderating inflation have pushed rates down from their 2024 peak of 7.8%. Bond market expectations of further cuts are keeping downward pressure on mortgage rates.

Market Impact

Mortgage applications surged 28% in the past week. Real estate agents report multiple-offer situations returning in hot markets after a two-year cooling period.