Mortgage rates are back below 6%, the lowest since 2022
Business Insider
February 24, 2026
AI-Generated Deep Dive Summary
Mortgage rates have dropped significantly, reaching a low of 5.99% for the 30-year fixed rate, marking the lowest level since 2022. This decline represents a sharp decrease from last year's high of 6.89%. The drop in rates has been attributed to a stock-market sell-off that pushed investors into safer assets like bonds, which in turn lowered Treasury yields and mortgage rates. While refinancing activity is on the rise—applications have surged by approximately 130% compared to last year—homebuying remains subdued. Pending home sales declined slightly in January, both month-over-month and year-over-year.
The decline in borrowing costs is expected to fuel refinancing activity further, as lower rates make it more affordable for homeowners to refinance their mortgages. However, the housing market has yet to see a significant increase in buyer activity despite improved affordability conditions. According to Lawrence Yun of the National Association of Realtors (NAR), while 5.5 million additional households now qualify for loans compared to last year, most newly eligible buyers do not enter the market immediately. Yun estimates that about 10% of these new qualifiers could become homebuyers this year, potentially adding up to 550,000 new buyers.
Beyond mortgage rates, other factors are contributing to easing affordability pressures. Median home prices have remained stable toward the end of 2023, and wage growth is expected to outpace price gains in the coming year. This combination could further improve housing affordability for potential buyers. However, experts note that the lagging homebuying activity suggests that market dynamics are complex and influenced by factors beyond just interest rates.
For business readers, this shift in mortgage rates signals a broader economic trend. The movement of investors into bonds following stock-market volatility highlights the interconnectedness of financial markets and the impact of macroeconomic developments on consumer behavior. While lower rates may stimulate refinancing and potentially boost homebuying in the long term, the delayed response underscores the challenges of predicting market movements and the importance of considering multiple
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Originally published on Business Insider on 2/24/2026