Mortgage rates fall below 6% for first time since 2022

Mortgage rates fall 6% for first time since 2022

Mortgage rates fell below 6% this week for the first time in three and a half years, mortgage buyer Freddie Mac said Thursday. LiveNOW's Mike Pache discussed what the rate drop means for prospective home buyers and sellers with Alisa Wolfson from MarketWatch.

The average long-term U.S. mortgage rate fell below 6% on Thursday for the first time since late 2022. 

The reduced rate signals positive news for prospective homebuyers as the spring home-buying season approaches.

Mortgage rates fall below 6%

By the numbers:

The benchmark 30-year fixed rate mortgage rate fell to 5.98% from 6.01% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.76%.

A for sale sign is displayed outside of a home for sale on August 16, 2024 in Los Angeles, California. (Credit: PATRICK T. FALLON/AFP via Getty Images)

The average rate has been hovering close to 6% this year. This latest dip, its third decline in a row, brings it to its lowest level since Sept. 8, 2022, when it was 5.89%.

What they're saying:

"Assuming rates stay below 6%, buyers and sellers are going to start getting back into the market," Lisa Sturtevant, chief economist at Bright MLS, told The Associated Press. "March is when the spring home-buying season typically begins to ramp up and with rates at a three-and-a-half year low, it could be a barn burner of a spring home-buying season."

Mortgage rates trend lower

Big picture view:

Mortgage rates have been trending lower for months, helping drive a pickup in home sales the last four months of 2025, but not enough to lift the housing market out of its slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows.

However, with the average rate on a 30-year mortgage now below 6% as the annual spring home-buying season begins, it could encourage prospective home shoppers who can afford to buy at current rates to shop for a home this spring.

In November, President Donald Trump and administration officials signaled that they're planning to develop a 50-year mortgage that they think could expand access to homeownership, though experts are cautioning the longer-term mortgages could hamstring homebuyers.

RELATED: Trump's 50-year mortgage proposal: What would it mean for homebuyers?

Trump posted on his Truth Social platform with a graphic showing pictures of "Great American Presidents" including Franklin D. Roosevelt, who was in office when the 30-year mortgage was popularized, and himself to suggest he will develop a 50-year mortgage.

Financial industry experts responded to the 50-year mortgage proposal with skepticism, noting it would likely come with a higher interest rate than a traditional 30-year mortgage and the longer duration would increase the cumulative interest paid by borrowers.