US mortgage rates fall below 6% as spring housing market season begins

The US housing market is entering its busiest time of year with a notable shift in borrowing costs.

The average long term mortgage rate has moved below 6% for the first time since late 2022, offering some relief to buyers preparing for the spring home buying season.

While the decline does not reverse the broader slowdown that has defined the market since 2022, it signals a change in momentum after months of elevated borrowing costs.

The move comes as bond yields edge lower and as buyers and sellers assess whether improved financing conditions can translate into stronger activity.

Rate dip in focus

The benchmark 30 year fixed mortgage rate fell to 5.98% from 6.01% last week, according to data by Freddie Mac.

It marks the third consecutive weekly decline and places the average at its lowest level since September 2022.

A year ago, the same rate stood at 6.76%.

The latest reading also brings borrowing costs closer to 5.89%, the level recorded on 8 September 2022.

So far this year, mortgage rates have largely hovered near the 6% threshold.

Moving below that mark may carry psychological significance for households that delayed purchases during the recent stretch of higher costs.

Bond yields and Fed signals

Mortgage pricing is shaped by several forces.

Federal Reserve interest rate decisions play a role, but lenders also look closely at bond markets.

In particular, the 10 year US Treasury yield serves as a guide for home loan pricing.

At the time of writing, the 10 year Treasury yield stood at 3.98%, down from about 4.08% a week earlier. As yields ease, mortgage rates tend to follow.

Investor expectations around inflation and economic growth also feed into bond movements.

That dynamic has contributed to a gradual downward trend in mortgage rates in recent months.

Housing market still subdued

Lower borrowing costs have supported a modest pickup in home sales during the final four months of 2025.

Even so, the broader housing market remains weighed down by the slowdown that began in 2022, when rates climbed sharply from pandemic era lows.

Sales of previously occupied US homes remained at 30 year lows last year.

More favourable mortgage rates at the start of this year were not enough to prevent another setback.

Home sales posted their largest monthly drop in nearly four years and reached the slowest annualised pace in more than two years.

That backdrop suggests that while financing conditions are improving, affordability constraints and limited supply continue to influence activity.

Spring season test

The spring home-buying season typically gathers pace in March.

With the average 30 year mortgage rate now below 6%, market participants are watching to see whether more buyers return.

Lisa Sturtevant, chief economist at Bright MLS said in a Associated Press report that if the rates remain under 6%, both buyers and sellers could re enter the market as the season ramps up.

She noted that March usually marks the start of stronger activity and described current borrowing costs as the lowest in about three and a half years.

Whether the dip in rates leads to sustained momentum will depend on how long borrowing costs stay at these levels and how households respond to wider economic signals.