MW Mortgage rates fall below 6% for the first time since 2022, giving buyers a glimpse of affordability

By Leslie Albrecht

Falling rates could 'drive more potential buyers into the market for spring home-buying season,' says Freddie Mac's chief economist

Elevated mortgage rates and high home prices have forced many house hunters to put off buying plans in recent years. Rates have fallen overall since the start of 2026.

Falling mortgage rates are giving home buyers something they haven't seen in a long time: a glimpse of affordability.

The average 30-year mortgage rate hit 5.98% as of Feb. 26, according to Freddie Mac, down from 6.01% the prior week.

A year ago, the average rate on a 30-year fixed-rate mortgage was 6.76%. Elevated mortgage rates and high home prices have forced many house hunters to put off buying plans in recent years. That's driven home sales down and pushed the average age of a first-time home buyer to an all-time high of 40.

But falling mortgage rates have now pumped up buyers' purchasing power. A household making the median income of about $86,300 can now "comfortably afford" a $331,483 home with a 20% down payment, according to a new analysis from the real-estate platform Zillow (Z). That's $30,000 more than a year ago, Zillow said.

The median sales price of an existing home in the U.S. was $396,800 as of January, according to the National Association of Realtors.

"A more than $30,000 gain in buying power is meaningful for households that have been stretched thin by high rates. It can mean the difference between settling and choosing," noted Kara Ng, senior economist at Zillow, in the report. "That doesn't suddenly make this market affordable for everyone, but it does crack open doors that had firmly shut when rates peaked."

Mortgage rates under 3% during the COVID-19 pandemic fueled a rush of home buyers. But when rates soared to over 7% in late 2023 and home prices continued to tick upward, many would-be buyers were shut out of the market. That pushed home sales to 31-year low in 2025.

Some see the chance for increased home sales in the coming months.

"For the first time in three-and-a-half years, the 30-year fixed-rate mortgage dropped into the 5% range, falling even lower than last week's milestone," said Sam Khater, Freddie Mac's (FMCC) chief economist. "This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for spring home-buying season."

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-Leslie Albrecht

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February 28, 2026 12:53 ET (17:53 GMT)

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