Home Affordability Jumps 10 Percent as Mortgage Rates Dip Below 6%

Zillow forecasts robust spring homebuying season with lower rates and steady prices

Published on Mar. 2, 2026

Got story updates? Submit your updates here. ›

Falling mortgage rates and steady home prices are making homes more affordable, according to a new analysis by Zillow. The 30-year fixed mortgage rate has dipped below 6% for the first time since September 2022, allowing a median-income U.S. household to afford a $331,483 home - a 10% improvement over last year.

Why it matters

Improved home affordability is expected to drive more potential buyers into the market for the upcoming spring homebuying season, providing a boost to the housing market after a period of high rates and low inventory.

The details

Freddie Mac reported last week that the 30-year fixed mortgage rate is now averaging 5.98%, the first time it has dipped below 6% since September 2022. According to Zillow's analysis, this lower mortgage rate translates to a median-income household being able to afford a $331,483 home, a 10% improvement over the $301,000 affordability threshold from last year.

  • The 30-year fixed mortgage rate fell below 6% as of the week of February 24, 2026.
  • Zillow's analysis of improved home affordability is based on current market conditions.

The players

Freddie Mac

A government-sponsored enterprise that provides liquidity and stability to the U.S. housing market by purchasing mortgages from lenders.

Sam Khater

Freddie Mac's chief economist, who commented on the significance of mortgage rates dipping below 6%.

Zillow

A real estate technology company that conducted the analysis on improved home affordability.

Got photos? Submit your photos here. ›

What they’re saying

“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 combination of lower mortgage rates and steady home prices is making homes more affordable for median-income households, which is expected to boost homebuying activity in the upcoming spring season after a period of high rates and low inventory.