Mortgage rates have dropped this week, hitting their lowest point since September 2022, according to Freddie Mac.
Their latest report indicates that the average interest rate for a 30-year fixed mortgage declined to 6.01%, down from 6.09% the previous week.
To give some context, a year ago, this rate was significantly higher at 6.85%.
As the market stabilizes, many Americans are finding rent to be more affordable.
According to Sam Cater, chief economist at Freddie Mac, “This low interest rate environment not only improves affordability for prospective homebuyers but also strengthens the financial position of homeowners.” He added that refinance applications have more than doubled over the past year. Many recent homebuyers have been able to cut their annual mortgage payments by thousands.
The average rate for a 15-year fixed mortgage also fell, now sitting at 5.35%, down from 5.44% last week.
The growth rate of households in the Texas capital has surged, surpassing the national growth rate.
While U.S. home prices are on the rise, the most rapidly growing markets continue to remain affordable.
Several factors, including the Federal Reserve and broader geopolitical circumstances, influence mortgage rates. While they aren’t impacted directly by the Fed’s interest rate decisions, they are closely tied to the yield on the 10-year Treasury bond. Currently, that yield is about 4.08%.
Jake Krimmel, a senior economist at Realtor.com, noted, “The drop from last week’s 6.09% follows a sharp decrease in the 10-year Treasury yield, which recently reached its lowest level since late November 2025, following softer-than-expected CPI data and a relatively optimistic jobs report.”
Lower interest rates are expected to positively impact the spring home buying season. Krimmel suggested that this spring might see rates nearly a full percentage point lower, which would enhance purchasing power. However, he mentioned that the supply dynamics are somewhat unpredictable. The completion of new construction in 2025 is projected to lag behind that of 2024, and the growth in inventory appears to be slowing.
Still, Krimmel cautioned that if the “lock-in effect” on existing mortgages doesn’t ease, lower rates could spark renewed competition in the market, potentially pushing prices higher.
