Mortgage Rates Plummet Below 6% – A New Window for Homebuyers
The U.S. housing market is witnessing a pivotal shift as the average 30-year fixed mortgage rate dropped to 5.99%, according to recent data. This marks the lowest level since February 2023, offering long-awaited relief to borrowers strained by years of rising borrowing costs.
Policy Moves Spark Market Shift
The decline follows strategic government purchases of mortgage-backed securities, injecting liquidity and lowering long-term interest rates. While not a direct rate cut, the move eased financial institutions’ funding costs, prompting lenders to pass savings to consumers.
- 30-year rate down from 6.21% to 5.99%
- 15-year fixed rate now at 5.55%
- Over 1% decrease compared to last year
Lower payments could revive stalled homebuying plans and boost housing demand. Analysts suggest sustained rates near 6% may fuel a stronger-than-expected spring market in 2024.