Mortgages Dip Below 6% for First Time Since 2022

The average 30-year fixed mortgage rate has slipped below a key psychological barrier, falling to 5.98% this week — the first time it has dipped under 6% since September 2022, The Wall Street Journal reports.

The move comes at a pivotal moment for housing. Spring is traditionally the busiest season for home sales, as families look to buy and move before the new school year.

Breaking below 6% could help jumpstart a market that has been stalled for nearly three years, according to industry watchers.

Mortgage rates briefly climbed above 7% early last year but have gradually declined amid cooling inflation, rising economic uncertainty and three Federal Reserve rate cuts in the second half of 2025.

The Fed’s benchmark federal funds rate now sits in a range of 4.00% to 4.25%, down from its recent peak, easing borrowing costs across the economy.

For 30-year mortgage rates to cross into the 5% range carries outsized importance, lenders say.

Homebuyers understand that pandemic-era rates below 3% are unlikely to return and are adjusting expectations accordingly.

Bill Banfield, chief business officer at Rocket, said buyers increasingly see 5% to 6% as the new normal. If rates settle firmly in the 5% range, he said, many shoppers who have been waiting on the sidelines may decide it’s time to move forward.

The dip below 6% is also expected to spur refinancing activity, particularly among homeowners who purchased when rates were higher.

A Crucial Spring for Housing

The timing could be critical.

The housing market has been stuck in one of its longest slowdowns in decades, with existing-home sales hovering near multi-year lows.

Spring typically delivers the strongest activity of the year for brokers and homebuilders, as sellers list properties and buyers re-enter the market in larger numbers.

Still, lower rates alone may not be enough to spark a full rebound.

Purchase mortgage applications recently slipped to their lowest seasonally adjusted level since April, and existing-home sales fell sharply in January. Some of that decline was attributed to harsh winter weather, but broader affordability pressures remain.

Headwinds Remain

Nevertheless, even with rates near 6%, affordability is strained.

A median-income U.S. household can now afford a home priced around $331,483, according to Zillow — the most affordable price since 2022 but still challenging in many markets where prices remain near record highs.

Home values nationally have climbed a whopping 50% since 2019.

Rising property taxes, higher insurance premiums and elevated utility bills are further increasing the cost of ownership.

At the same time, concerns about job security are weighing on buyers’ confidence.

Real-estate agents report that uncertainty about the economy is causing some shoppers to delay major financial commitments. Industry analysts note that job stability and consumer confidence may ultimately matter as much as rates in determining whether sales rebound.

There is also a risk that further rate declines could intensify competition, pushing prices higher and offsetting affordability gains.

For now, though, breaking below 6% marks a symbolic shift.

With spring listings increasing and rates settling into what many consider a new 5%-to-6% norm, housing professionals say the coming months will reveal whether lower borrowing costs are enough to bring sidelined buyers back into the market.