Mortgage rates have fallen below 6% for the first time since 2022, offering a potential boost for buyers this spring.

Why This Matters:

– 30-year fixed rate: 5.98%, the lowest since September 2022.

– Psychological milestone: Rates under 6% may encourage buyers waiting on the sidelines.

– Refinancing opportunity: Homeowners who purchased at higher rates may benefit.

– Increased affordability: Median-income households could afford homes up to $331,483.

Market Context:

Home sales have been slow, stuck at their lowest levels in decades.

Spring is typically the busiest season for buying and selling, especially for families wanting to move over the summer.

Despite falling rates, purchase applications recently hit the lowest level since April, and existing-home sales fell 8.4% in January due to weather and other factors.

Expert Insights:

“Rates between 5–6% are the new normal,” says Bill Banfield, Chief Business Officer at Rocket Mortgage.

Margaret Whelan, CEO of Whelan Advisory, notes that jobs and confidence are just as important as rates in driving home sales.

📊 Quick Stats:

– 30-Year Fixed Rate: 5.98%

– Rate Peak (Jan 2025): >7%

– Median Home Affordability: $331,483

– Existing-Home Sales Drop (Jan): 8.4%

– Price Increase Since 2019: 50%

📈 Bottom Line:
Falling mortgage rates are creating an opportunity for buyers, sellers, and the housing market overall. With spring approaching, this could finally revive activity after years of slow sales