US Mortgage Rates Drop Below 6% for First Time in Nearly 4 Years

Falling rates and improving home inventory could drive more buyers into the market for spring homebuying season.

Published on Feb. 27, 2026

Got story updates? Submit your updates here. ›

The rate on a 30-year fixed mortgage has dropped below 6% for the first time in nearly four years, according to data from Freddie Mac. Rates have been hovering around 6% this year but averaged 6.76% last February. Freddie Mac's chief economist says this lower rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for the upcoming spring homebuying season.

Why it matters

Falling mortgage rates can make home purchases more affordable for buyers, potentially boosting housing demand and activity during the key spring homebuying season. This could provide a lift to the overall housing market, which has faced headwinds from high prices and rising interest rates in recent years.

The details

According to Freddie Mac, the 30-year fixed-rate mortgage dropped below 5% for the first time in over three and a half years. The lower rates come as home inventory has been improving, providing more options for buyers. Freddie Mac's chief economist says this combination of lower rates and better home availability will likely drive more potential buyers into the market in the coming months.

  • The 30-year fixed mortgage rate averaged 6.76% in February 2025.
  • The 30-year fixed mortgage rate dropped below 6% in February 2026.

The players

Freddie Mac

A government-sponsored enterprise that purchases and guarantees mortgages in the secondary mortgage market.

Sam Khater

Freddie Mac's chief economist.

Got photos? Submit your photos here. ›

What they’re saying

“For the first time in three and a half years, the 30-year fixed-rate mortgage dropped into the 5% range, falling even lower than last week's milestone. This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for spring homebuying season.”

— Sam Khater, Chief Economist (Freddie Mac)

The takeaway

The drop in mortgage rates below 6% for the first time in nearly four years, coupled with improving home inventory, could provide a boost to the housing market and draw more buyers into the market for the upcoming spring homebuying season.