Mortgage rates have fallen below the 6% level for the first time in more than three years, according to results of Freddie Mac’s Primary Mortgage Market Survey® (PMMS®) released Thursday.
“For the first time in three and a half years, the 30-year fixed-rate mortgage (FRM) dropped into the 5% range, falling even lower than last week's milestone,” Freddie Mac’s Chief Economist Sam Khater said, announcing the news:
“This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for spring homebuying season.”
The 30-year FRM averaged 5.98% on February 26, 2026, down from 6.01% last week and 6.76% a year earlier. The last time the rate was below 6.00% was in September of 2022.
“That amounts to hundreds of dollars’ reduction in mortgage payments,” Professor of Real Estate at Columbia Business School said, commenting on the lower rates.
“A 0.25% drop in the rate can enable a buyer afford about 2.5% more house while keeping the same monthly payment,” Bhavesh Patel, an executive at Chase Home Lending, told CNN:
“Nationwide we’re seeing inventory start to stabilize and even rise modestly, which could indicate that homeowners are becoming more comfortable with the current rate environment to consider a move.
“In some pockets across the US, we’re starting to see six or more months of inventory, which could lead to more favorable conditions for buyers.”
Making home-buying more affordable is a prime objective of the Trump Administration, as The Hill explains:
“President Trump touted the improvements to mortgage rates during Tuesday’s State of the Union after pledging to give “special attention” to the housing market last month amid a steady annual decline in sales since 2022.
“Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds in an effort to further improve current rates.”
“This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed,” Trump said when he first announced the planned purchase in January.
Rates may fall even lower in March, as the events of three key dates next month could help determine their direction:
- March 6, 2026: The next unemployment report from the Bureau of Labor Statistics (BLS).
- March 11, 2026: The next monthly inflation report from the BLS.
- March 18, 2026: The next Federal Reserve meeting.
The business and economic reporting of CNSNews is funded in part with a gift made in memory of Dr. Keith C. Wold.
