"The average 30-year fixed mortgage rate is around 5.98% to 5.99% this week, Freddie Mac said Thursday. The percentage is down sharply from 6.8% to 6.9% a year ago and from peaks near 8% in late 2023, per The Wall Street Journal. On a typical loan, that rate drop can cut monthly payments by hundreds of dollars for home buyers."
"Lawrence Yun, chief economist at the National Association of Realtors, estimated that with rates under 6%, roughly 5.5 million more households qualify for a mortgage than a year ago. He expects a share of them to actually enter the market this year. 'Most newly qualifying households do not act immediately, but based on past experience, about 10% could enter the market - potentially adding roughly 550,000 new homebuyers this year compared with last year,' Yun said."
"With financing cheaper and more households qualifying, buyer traffic is expected to strengthen into the key spring selling season. Kimberly Schmidt, a real estate agent at Compass Real Estate in San Diego, California, told CBS News this month that she is already seeing more buyer activity this year than last, especially from first-time buyers."
Mortgage rates have declined to approximately 5.98%-5.99%, marking the lowest level since September 2022 and creating significant affordability improvements for home buyers. This represents a substantial decrease from 6.8%-6.9% one year ago and from peaks near 8% in late 2023. Lower rates translate to reduced monthly payments—for example, a $600,000 loan at 6% versus 6.85% saves approximately $310 monthly. The National Association of Realtors estimates that 5.5 million additional households now qualify for mortgages compared to last year, with approximately 10% expected to enter the market, potentially adding 550,000 new homebuyers. Real estate agents report increased buyer activity, particularly among first-time buyers, as the market enters the spring selling season.
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