It’s taken three and a half years, but mortgage rates finally have a “five-handle.”
Borrowing costs for home loans pushed above 6% in September 2022, and have been at least that high – and occasionally in the 7% range – since then. But on Feb. 26, Freddie Mac’s weekly average stood at 5.98% for the popular 30-year fixed-rate mortgage. That’s a national average, and some local areas may still have rates above 6%, while others may have enjoyed rates in the 5s for some time.
Overall, however, the national milestone is welcome news for the limping housing market. In 2024, sales of previously owned homes fell to the lowest level since 1995. When the numbers are finally tallied for 2025, they’re likely to have fallen even further.
“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,” said Sam Khater, Freddie’s chief economist, in a release.
Buyers can get more for their money
Lower rates mean buyers can
Mortgage rates below 6% bring fresh hope to the housing market
