What Do Sub-6% Mortgage Rates Mean for Buyers?

U.S. mortgage rates recently fell below 6%, the lowest level since September 2022 and well below the long-term average of about 7.69% since 1971.

Lower rates can significantly improve affordability, saving buyers roughly $550–$600 per month on a $1 million home purchase.

More homeowners may consider selling, as falling rates reduce the “lock-in effect” for those currently holding ultra-low mortgages near 3%.

Buyer demand could increase during the spring market, which may push home prices higher and offset some affordability gains from lower mortgage rates.