Mortgage Rates Drop Below 6%

• February 24th

by UrbanTurf Staff

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It's a milestone that house hunters have been waiting on: mortgage rates are back below 6%.

The average 30-year fixed mortgage rate has dropped to 5.99%, Mortgage News Daily reported on Monday. That is 90 basis points lower than at this time last year.  The slide is being driven by a mix of economic headwinds, including fresh uncertainty around tariffs and a disappointing GDP report that signaled some softness in the broader economy.

What makes this dip feel different from January's brief flirtation with the high 5% range is staying power. When rates slipped momentarily into 5% territory earlier this year, they bounced back almost immediately. This time, it could be different. 

"Unlike last time, mortgage rates have eased down to current levels in a much more gradual and--dare we say--sustainable way," Mortgage News Daily's Matthew Graham reported. "After all, today's improvement is only a moderate 0.05% vs Friday. Back on January 9th, the initial day-over-day jump was more than 0.20%."

The most immediate reaction to the drop will likely be on the refinancing side — refi applications are already up roughly 130% compared to this time last year. Purchase activity tends to respond more slowly, but as spring inventory hits the market, this rate environment could give buyers a meaningful window. 

This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_rates_drop_below_6/24352.