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Mortgage rates fall below 6% for first time in years
Economist Dr. Mike Walden joins LiveNOW's Austin Westfall to break down new data that shows U.S. mortgage rates have dipped below 6% for the first time in years.
WASHINGTON - The average long-term U.S. mortgage rate has dropped for the third week in a row.
The dip is a welcome sign for prospective homebuyers as the spring homebuying season continues.
Mortgage rate drops again
By the numbers:
The benchmark 30-year fixed rate mortgage rate fell to 6.23% from 6.3% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.81%.
The average rate is now at its lowest level since March 19, when it was 6.22%.
A "For Sale" sign is posted outside a property on April 7, 2026 in Pasadena, California (Credit: Mario Tama/Getty Images)
Meanwhile, borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week.
That average rate dropped to 5.58% from 5.65% last week. A year ago, it was at 5.94%, Freddie Mac said.
What is influencing mortgage rate dips
Big picture view:
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation.
Rates have been declining of late, echoing some easing in the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to pricing home loans.
As recently as late February, the average rate on a 30-year mortgage slipped just under 6% for the first time since late 2022. It started climbing last month as the war with Iran sent energy prices soaring, heightening worries about higher inflation.
What they're saying:
"Looking ahead, mortgage rates will likely continue to be volatile throughout the spring," Lisa Sturtevant, chief economist at Bright MLS, told The Associated Press. "For the market to regain full momentum, we will need to see more than just a temporary dip in rates. Rather, we need sustained stability in the global energy market and a clearer sign that domestic inflation is back on a downward trajectory."
Mortgage rates dip, but home prices continue to climb
Dig deeper:
Despite the dip in mortgage rates, the cost of buying a home in the United States has climbed sharply in recent years, rising much faster than inflation and pushing homeownership beyond the reach of many Americans, according to a new analysis by WalletHub.
RELATED: Where your state ranks on housing costs — The most and least expensive revealed
According to the data, Hawaii ranked as the most expensive state for housing relative to income, with residents spending about 50% of their earnings on mortgage payments and home energy costs. California ranked second, with residents spending roughly 43% of their median household income on housing.
By contrast, residents in states like Iowa spend closer to 17% of their income on housing.
The Source: This story was reported from Los Angeles. The Associated Press, Chris Williams contributed.