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The average 30-year fixed mortgage rate fell to 6.01%, its lowest level since September 2022.
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Rates have declined for two consecutive weeks and are significantly lower than a year ago.
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Falling rates are driving a surge in refinance applications and could energize the spring housing market.
Mortgage rates continued their downward trend this week, offering a potential boost to homebuyers and sellers heading into the critical spring homebuying season.
Freddie Mac reports that the average 30-year fixed-rate mortgage fell to 6.01% as of February 19, down from 6.09% the previous week. A year ago, the benchmark rate averaged 6.85%.
The 15-year fixed-rate mortgage also declined, averaging 5.35%, compared with 5.44% last week and 6.04% at the same time last year.
“Mortgage rates dropped again this week, now down to their lowest level since September of 2022,” said Sam Khater, Freddie Mac’s chief economist. “This lower rate environment is not only improving affordability for prospective homebuyers, it’s also strengthening the financial position of homeowners. Over the past year, refinance application activity has more than doubled, enabling many recent buyers to reduce their annual mortgage payments by thousands of dollars.”
A key moment for the spring market
The timing of the rate decline could prove significant. The spring months typically mark the busiest period for home sales, as families look to move before the next school year and sellers list properties in greater numbers.
A drop of nearly a full percentage point from a year ago can meaningfully change monthly payments. For example, on a $400,000 home with a 20% down payment, the difference between a 6.85% rate and a 6.01% rate can translate into hundreds of dollars in savings each month. That improvement in affordability may help bring some sidelined buyers back into the market.
Lower borrowing costs also expand purchasing power, allowing buyers to qualify for slightly more expensive homes without increasing their monthly budgets. In markets where home prices have remained elevated, even modest rate relief can help offset affordability pressures.
Refinancing surge strengthens homeowners
Existing homeowners are also benefiting. As rates have drifted lower, refinance activity has accelerated. According to Freddie Mac, refinance application activity has more than doubled over the past year.
For buyers who purchased homes when rates were closer to 7%, refinancing at or near 6% can reduce annual mortgage costs by thousands of dollars. That extra cash flow may improve household budgets and consumer spending more broadly.
Still, while rates have improved and are at historic norms, they remain above the ultra-low levels seen during the pandemic. Housing inventory constraints in many markets could also temper how much additional demand translates into higher sales volume.
What comes next?
The direction of mortgage rates in the coming weeks will be critical. If rates remain near 6% or move lower, the spring housing market could see stronger-than-expected activity, especially from first-time buyers who are highly sensitive to monthly payment changes.
On the other hand, if rates reverse course, some buyers may once again retreat to the sidelines.
For now, the latest data suggest that borrowing conditions are improving at a pivotal moment for the housing market — offering both buyers and homeowners a welcome measure of relief as the 2026 spring season gets underway.