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The average 30-year fixed mortgage rate fell to 5.98%, dipping into the 5% range for the first time in three and a half years.
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Rates are down slightly from last week and significantly lower than a year ago.
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Freddie Mac’s chief economist says the drop could boost spring homebuying activity.
Mortgage rates edged lower this week, crossing an important threshold and offering prospective homebuyers a sign of relief ahead of the spring buying season.
Freddie Mac reports its Primary Mortgage Market Survey shows that the average 30-year fixed-rate mortgage fell to 5.98% as of February 26, 2026. That marks a slight decline from last week’s average of 6.01% and a notable drop from 6.76% a year ago.
“For the first time in three and a half years, the 30-year fixed-rate mortgage dropped into the 5% range, falling even lower than last week’s milestone,” said Sam Khater, Freddie Mac’s chief economist.
“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 run-up in home prices since 2020 has made 6%-plus mortgage rates unaffordable. The return of rates to the 5% range could improve affordability for many buyers who have been sidelined by higher borrowing costs in recent years.
Even small declines in mortgage rates can translate into meaningful monthly savings for borrowers, particularly in higher-priced markets.
The 15-year rate is even lower
Meanwhile, the average 15-year fixed-rate mortgage — often popular with homeowners looking to refinance or pay off their loans more quickly — rose slightly to 5.44%, up from 5.35% last week. Despite the weekly increase, the 15-year rate remains below the 5.94% average recorded at this time last year.
The combination of easing 30-year rates and a gradual increase in homes available for sale may help stimulate demand during what is traditionally the busiest period of the year for real estate. Market observers will be watching closely to see whether the dip below 6% provides sustained momentum for buyers and sellers alike as the spring season unfolds.
