Mortgage rates fall below 6%, giving buyers a glimpse of affordability

MarketWatch

by Leslie Albrecht

February 26, 2026

AI-Generated Deep Dive Summary

Mortgage rates have dropped below 6%, offering a ray of hope for home buyers seeking more affordable financing options. This decline, according to Freddie Mac’s chief economist, could stimulate the spring home-buying season by attracting more potential buyers to the market. With lower borrowing costs, consumers may feel encouraged to explore homeownership or refinance existing mortgages, potentially boosting housing demand and economic activity. The drop in mortgage rates reflects broader trends in the financial markets. Experts attribute this decrease to a combination of factors, including shifts in monetary policy and reduced inflationary pressures. While interest rates remain above pre-pandemic levels, the recent decline provides some relief for buyers navigating a still competitive housing market. This development comes at a time when home prices remain elevated, but lower rates can help offset financial burdens for those looking to purchase or refinance. For buyers and refinancers, this shift in mortgage rates presents both opportunities and challenges. On one hand, reduced borrowing costs make homeownership more accessible for some income brackets. On the other hand

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Originally published on MarketWatch on 2/26/2026