Most of us were never taught how the economy actually […]
The average rate on the popular 30-year fixed mortgage fell to 5.99% on Monday, February 23, 2026. This matches the lowest level since 2022, according to Mortgage News Daily.
Last year at this time, the average mortgage rate stood at 6.89%, indicating a significant year-over-year decrease of 0.90 percentage points.
The recent drop in mortgage rates is attributed to a sell-off in the stock market. Investors moved their money to the bond market, which caused yields to decrease.
As yields fell, mortgage rates followed suit. Matthew Graham, the chief operating officer at Mortgage News Daily, noted that this drop seems more sustainable compared to previous fluctuations.
The decrease in mortgage rates is expected to encourage more refinancing.
Applications to refinance a home loan are approximately 130% higher than they were a year ago, according to the Mortgage Bankers Association. This surge in refinancing applications indicates that homeowners are eager to take advantage of the lower rates.
For buyers entering the housing market now, the lower rates mean they can afford more.
For instance, a buyer who puts 20% down on a median-priced home, which is about $400,000, would have a monthly payment of $1,916 for principal and interest. This is compared to $2,105 a year ago, resulting in a difference of $189 each month.
With mortgage rates nearing 6%, an additional 5.5 million households that could not qualify for a mortgage one year ago would qualify at today’s lower rates.
Lawrence Yun, the chief economist at the National Association of Realtors, mentioned that historically, around 10% of newly qualifying households typically enter the market. This could potentially add about 550,000 new homebuyers this year compared to last year.
While applications for purchasing homes have not yet seen a significant increase, they were only 8% higher year over year as of mid-February.
The current trends suggest that if the broader bond market remains stable, mortgage rates could stay close to their present levels, offering better opportunities for potential buyers.
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