WASHINGTON, Feb. 27 — The average U.S. 30-year fixed mortgage rate slipped to 5.98% this week, the first time below 6% since September 2022, according to Freddie Mac’s Primary Mortgage Market Survey, a threshold economists said is meaningful but not enough to unlock the housing market on its own.
The 30-year rate fell from 6.01% a week earlier and was 6.76% a year ago, while the 15-year fixed mortgage rose to 5.44%, according to Freddie Mac’s release and coverage by Fox Business.
Psychological threshold, limited supply
Economists told Reuters the rate drop is likely temporary and won’t revive housing demand without more listings, a view echoed by NPR as tight inventory keeps affordability strained.
Still, housing analysts say the sub‑6% headline could nudge some buyers and would‑be sellers off the sidelines, a theme highlighted in NPR’s report and in Reuters’ coverage of the “rate‑lock” effect.
Early signs show refinancing interest
Mortgage applications rose 2.8% in the most recent Mortgage Bankers Association weekly survey, driven primarily by refinancing activity, according to NPR, suggesting buyers remain cautious even as rates drift down.
Consumer finance sites say lower rates have already improved buying power for many households; Money.com noted the 30‑year benchmark below 6% for the first time in more than three years, aligning with Freddie Mac’s weekly survey.
What to watch next
Mortgage rates tend to track the 10‑year Treasury yield; Fox Business cited the yield hovering near 4.02% Thursday, consistent with the relationship described by Reuters.
Policy moves are also in focus after the administration ordered mortgage‑bond purchases to lower borrowing costs, a step discussed by Reuters and noted in NPR’s coverage.
With spring homebuying season approaching, Freddie Mac’s chief economist Sam Khater said the current level “is meaningful and will drive more potential buyers into the market,” a view reported in the agency’s release and cited by Fox Business.
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