Mortgage Rates Dip Below 6% for the First Time Since Early 2026
Mortgage rates have dropped below 6% for only the second time since January 2026. The average for top-tier 30-year fixed-rate loans now stands at 5.99%, marking a three-year low. This decline follows a steady improvement in bond market conditions rather than a sudden shift in policy or economic news.
The current dip in rates contrasts sharply with the last major decline in early 2026. Back then, the Federal Housing Finance Agency (FHFA), under President Trump's direction, ordered Fannie Mae and Freddie Mac to buy up to $200 billion in mortgage-backed securities (MBS). That aggressive intervention boosted market liquidity and pushed rates down to 5.99% by January of that year.
This time, no single event triggered the drop. Instead, a gradual strengthening of the bond market since November has driven the change. Mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac have performed better than the wider market, helping to lower borrowing costs.
For borrowers with strong credit, today's rates translate to offers between 5.875% and 6.125%. However, the actual cost of a loan still depends on upfront fees set by lenders. Unlike in 2026, the Federal Reserve has kept its benchmark rates steady, and broader economic caution remains.
The latest decline brings mortgage rates back to levels last seen in early 2026. Borrowers now face lower costs, though additional fees can still affect overall affordability. The drop reflects a slow but steady improvement in financial markets rather than a dramatic policy shift.
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