30-Year Fixed Rate Drops Below 6% for First Time Since October

The average 30-year fixed mortgage rate fell to 5.94% this week, dipping below the 6% threshold for the first time since early October 2025. The decline follows months of gradually easing inflation data and growing expectations that the Federal Reserve will continue cutting its benchmark interest rate.

Lenders report a noticeable uptick in mortgage applications since the rate drop became apparent in the middle of last week. Refinance applications in particular have jumped 18% week over week, as homeowners who purchased or refinanced at higher rates see an opportunity to lower their monthly payments.

The rate decrease is also energizing the purchase market. First-time buyers, many of whom have been priced out by a combination of high home prices and elevated borrowing costs, are re-engaging with the market. A buyer purchasing a $400,000 home at 5.94% would save roughly $120 per month compared to the same purchase at 6.82%, which was the prevailing rate as recently as January.

Economists caution that rates could fluctuate in the coming weeks depending on upcoming economic data releases. The March jobs report and the next Consumer Price Index reading will both influence the bond market, which in turn drives mortgage rates. A surprisingly strong jobs number could push rates back above 6%.

Still, the broader trend appears favorable for borrowers. The Fed has signaled at least two more rate cuts this year, and most forecasters expect the 30-year fixed rate to settle in the mid-5% range by the end of 2026. That outlook has given both buyers and sellers renewed confidence in the market.