Mortgage rates hit a 3-year low (6.06%), sparking a massive refinance boom. While boosting affordability and market activity, experts don't expect major drops in 2026, signaling a slow thaw, not a sudden crash, for the housing market.
Major Points :
Rates at 3-Year Low – The average 30-year fixed mortgage rate dropped to 6.06%, the lowest since September 2022.
Refinance Boom – Refinance demand surged 128% compared to the same week last year and applications jumped 40% week-over-week.
Policy Influence – Rates briefly dipped below 6% after President Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds.
Affordability Improving – Homebuyers have gained over $30,000 in purchasing power in the last six months due to falling rates.
Limited Future Declines – Analysts do not expect major mortgage rate drops in 2026, noting today’s rates are still about double the historic lows of 2021.
Market Thaw Underway – With inventory improving and rates low, housing activity is showing signs of recovery ahead of the spring sales season.
