Average US long-term mortgage rate dips to 6.01%, lowest level in more than 3 years

U.S. mortgage rates fell to their lowest level in more than three years this week, with the benchmark 30-year fixed rate dropping to 6.01% from 6.09% last week, according to data released Thursday by mortgage buyer Freddie Mac.

The current rate represents a significant improvement from a year ago when it averaged 6.85%. This marks the lowest point since September 8, 2022, when the rate stood at 5.89% – the last time the average dipped below the 6% threshold.

The 10-year Treasury yield, which lenders typically use as a guideline for pricing home loans, stood at 4.08% Thursday midday, showing a slight decline from approximately 4.09% the previous week.

Despite the downward trend in mortgage rates throughout recent months, the housing market remains in a prolonged slump that began in 2022 when rates started climbing from pandemic-era lows. While there was a modest increase in home sales during the final four months of 2025, it wasn’t enough to significantly revitalize the market.

Sales of previously owned homes remained at 30-year lows throughout 2025. Even with more favorable mortgage conditions this year, home sales last month experienced their largest monthly decline in nearly four years and fell to the slowest annualized pace in over two years.

New data indicates the housing market may continue to struggle in the coming months. The National Association of Realtors (NAR) reported Thursday that the seasonally adjusted index of pending home sales decreased by 0.8% in January compared to December, and fell 0.4% year-over-year. Pending sales typically serve as an indicator of future completed transactions, as there’s usually a one to two-month gap between contract signing and sale finalization.

“Improving affordability conditions have yet to induce more buying activity,” said Lawrence Yun, NAR’s chief economist.

The housing market faces significant structural challenges beyond mortgage rates. A sharp increase in home prices, particularly earlier this decade, combined with a chronic housing shortage exacerbated by years of below-average construction, has left many potential homebuyers unable to enter the market.

For those still able to participate in the market, the recent decline in rates provides a welcome boost to purchasing power as the spring home-buying season approaches.

“Lower rates should improve affordability and bring out more buyers,” said Lisa Sturtevant, chief economist at Bright MLS. “Assuming mortgage rates remain at about where they are, or come down even further, we should see more buyers this spring as both inventory and the weather improves.”

Existing homeowners looking to refinance are also benefiting from the lower rate environment. The average rate for 15-year fixed-rate mortgages, which are popular refinancing options, decreased to 5.35% from 5.44% last week. A year ago, the rate was 6.04%.

The Mortgage Bankers Association reported that mortgage applications, including both purchase and refinance loans, increased 2.8% last week compared to the previous week. Refinance applications constituted 57.4% of all applications.

The latest decrease in mortgage rates comes three weeks after the Federal Reserve paused cuts to its main interest rate following three consecutive reductions at the end of 2025. Those cuts were implemented to support the job market.

Minutes from the Fed’s most recent meeting, released Wednesday, revealed that many officials want to see further declines in inflation before supporting additional interest rate cuts this year.

While the Federal Reserve doesn’t directly set mortgage rates, its monetary policy decisions significantly influence bond investors, ultimately affecting the yield on 10-year Treasuries that guide mortgage rates.

As the housing market continues to navigate these challenging conditions, potential buyers and industry professionals will be closely monitoring both Federal Reserve policy and mortgage rate trends for signs of further improvement in affordability.