For the first time in more than three years, mortgage rates have dipped below a key psychological level — and the housing market just felt it.
According to Freddie Mac, the average 30-year fixed mortgage rate fell to 5.98%, down from 6.01% last week. It’s the first sub-6% reading since September 2022 — a milestone that carries serious weight for buyers sidelined by affordability concerns.
After peaking above 7% multiple times over the past two years, this drop marks the lowest borrowing costs in more than three years.
Why This Drop Is a Big Deal
Mortgage rates have been one of the biggest obstacles for homebuyers since 2022. After pandemic-era record lows, borrowing costs surged, squeezing affordability and freezing many would-be buyers out of the market.
Now:
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Rates are at a 3+ year low
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Monthly payments become noticeably cheaper
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Buyer psychology shifts positively
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Housing demand could reawaken
But here’s the real story — the difference in payments is not small.
What 5.98% Means for Your Monthly Payment
At today’s average rate, here’s what principal & interest would look like on a 30-year fixed loan:
| Loan Amount |
Monthly Payment (5.98%) |
| $300,000 |
$1,795 |
| $350,000 |
$2,094 |
| $400,000 |
$2,393 |
| $500,000 |
$2,991 |
| $600,000 |
$3,590 |
On a $400,000 loan, the payment is about $2,393 per month at 5.98%.
At 6.5%, that same loan would cost around $2,528 — roughly $135 more per month, or over $1,600 extra per year.
And that’s just principal and interest. Taxes, insurance, and PMI would add to the total.
Should You Lock In Now?
That’s the million-dollar question.
Mortgage rates are influenced by:
They can move fast — sometimes in a matter of days.
Trying to “time the bottom” in mortgage rates can backfire.
The Bigger Picture
This sub-6% level is more than just a number.
It signals:
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Cooling borrowing pressure
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A shift in affordability
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Potential revival in housing demand
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Renewed confidence among buyers
But the best time to buy isn’t when rates are lowest.
By -Shahzad Ahmad
