U.S. Mortgage Rates Fall Below 6% for First Time Since 2022

The average rate for a 30-year fixed mortgage in the United States has fallen below 6% for the first time since 2022, potentially invigorating the upcoming spring home sales season. According to Jin10, data from Freddie Mac on Thursday showed the average rate for a 30-year fixed loan at 5.98%, down from 6.01% the previous week. The last time rates were below 6% was in September 2022. This decrease in rates may slightly ease the financial burden of purchasing a home, encouraging some hesitant buyers to enter the market. Since rates surged in 2022, the real estate market has been in a state of caution, with many potential buyers priced out and most homeowners holding onto properties with lower rates, reluctant to sell. Mike Simonsen, Chief Economist at real estate brokerage Compass Inc., noted that the gradual improvement in affordability could make this spring's sales season one of the best in years. "With rates below 6%, national sales will see solid growth," Simonsen stated. "However, without significant changes in economic data, it won't be enough to replicate the boom of 2021."