Mortgage rates in the United States have dropped below 6%, according to the White House. In a post on social media platform X (formerly Twitter), it further stated that this is the lowest mark since 2022.
The average 30-year fixed mortgage rate in the US dropped to 5.99% on Monday — same as in 2022, and over a percentage lower than the 6.89% rate the same time last year, CNBC reported.
“Mortgage rates just fell BELOW 6%, the lowest mark in years. President (Donald) Trump is helping make the American dream affordable again,” the post stated.
Why did mortgage rates in the US fall?
As per the report, investors rushing out of a volatile stock market amid the tariffs chaos, moved to safe haven bond market options on Monday, causing mortgage rates and yields to fall. Other factors such as lower inflation numbers on Friday and economic weakness also contributed to the numbers, it added.
As per a report by Mortgage News Daily, written by COO Matthew Graham, the rates are likely to stay below 6% this time (it briefly slipped into 5% on January 9 when the Fannie Mae/Freddie Mac bond buying plans were announced, but rose within hours).
Lower mortgage rates sustainable, can they go lower?
“This visit to the high 5′s looks more sustainable on paper. As long as the broader bond market doesn’t sell-off in any major way, mortgage rates stand a better chance of remaining closer to present levels than they did last time. And if the broader bond market improves further (ie 10 year yields dipping under 4.0%), mortgage rates would likely make incremental gains,” he wrote.
Notably, mortgage rates have been on a downward trend since November 2025, influenced by several factors — bond market investor expectations, economy, inflation, and the US Federal Reserve’s interest rate.
The rates generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans, as per an AP report.
Melissa Cohn, regional vice president at William Raveis Mortgage told CNBC’s Make It, that further reduction in mortgage rates would depend on the economic data that comes in. “If inflation continues to cool and the economy slows, rates could drift lower. If inflation picks up again, they are likely to rise. That said, mortgage rates never move in a straight line,” she added.
How much refinancing can Americans now afford for a home?
Hike in home prices, shortage of housing stock, and fears over below-average home construction have left many aspiring homeowners priced out of the market. Thus, this drop, in rates, will likely push more Americans into taking mortgages to refinance their home loans.
Data from the Mortgage Bankers Association showed that applications are 130% compared to the year-ago period.
So, what is the refinancing margin? A difference of around $189 per month, as per the National Association of Realtors. CNBC cited data to report that for 20% down payment on purchase of $400,000 home, American would now pay $1,916/month (principal and interest), compared to $2,105/month a year back. The number, while marginal, does add up to $2,268 in annual savings.
NAR’s chief economist Lawrence Yun further noted that lower rates mean more households can now qualify for mortgages compared to 2025. And while not all eligible will act, Yun said past experience shows “10% could enter the market”, adding about 5,50,000 new homebuyers compared to the previous year.
