The average interest rate on 30-year fixed-rate residential mortgages in the United States has fallen below 6%. This is the lowest level in about three years.
According to Freddie Mac, a U.S. government-sponsored mortgage company, as of this day the average rate on 30-year fixed-rate mortgages was 5.98%, based on data compiled on the 26th (local time). This is a decrease of 0.03 percentage point from the previous week.
This is the first time since September 2022 that the 30-year mortgage rate has fallen below 6%. After temporarily exceeding 7% in January last year, the rate has been on a gentle downward trend over the past few months.
Experts view this as the result of a combination of factors, including slowing inflation, economic uncertainty, and the Federal Reserve (Fed)'s policy stance of cutting its benchmark interest rate in the second half of last year.
The market is watching to see whether rates below 6% will become a turning point that stimulates housing demand sentiment. There is speculation that potential buyers who have postponed purchases in anticipation of lower rates may enter the market. There are also projections that applications for refinancing by borrowers who took out loans during the recent period of high interest rates could increase.
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