Mortgage rates fall below 6 percent for first time in more than 3 years

Mortgage rates fell below 6 percent on Thursday for the first time in more than three years, marking an opening for homebuyers as inflation cools. 

Currently, the 30-year fixed-rate mortgage is averaging 5.98 percent, down .03 points from last week, according to Freddie Mac. 

Last year, the rate averaged 6.76 percent. 

“This lower rate environment is not only improving affordability for prospective homebuyers, it’s also strengthening the financial position of homeowners,” Sam Khater, Freddie Mac’s chief economist, told NewsNation, The Hill’s sister network.

Last week, the 10-year Treasury yield reached its lowest closing level since November, causing some relief for mortgage rates, which traditionally rise and fall on the same accord. 

The Federal Reserve’s decision to lower interest rates to 2.4 percent has also positively influenced the housing market, which faced a 30-year low in 2025.

President Trump touted the improvements to mortgage rates during Tuesday’s State of the Union after pledging to give “special attention” to the housing market last month amid a steady annual decline in sales since 2022. 

Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds in an effort to further improve current rates. 

“This will drive Mortgage Rates DOWN, monthly payments DOWN, and make the cost of owning a home more affordable. It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed,” the president wrote in a January Truth Social post. 

“We are bringing back the AMERICAN DREAM that was destroyed by the last Administration. MAKE AMERICA GREAT AGAIN!” he added.

The push comes as Federal Housing Finance Agency Director Bill Pulte mulls an initial public offering process for the two companies.