Mortgage rates have continued their downward drift, falling below 6 percent this week to their lowest level in more than three years.

The average rate on a 30-year fixed mortgage dropped to 5.98 percent for the week ending Feb. 26, down from 6.01 percent the prior week, according to Freddie Mac’s weekly survey. A year ago, the 30-year rate averaged 6.76 percent.

The most recent time the benchmark rate was below 6 percent was September 2022, Freddie Mac said.

Mortgage rates peaked at a little less than 7.8 percent in October 2023 and have drifted down since, offering some relief to buyers who have struggled with affordability—and to homeowners who have been reluctant to sell because they’re locked into much lower mortgage rates.

Although rates today are still higher than they were in the early years of the COVID-19 pandemic, some experts say breaking the 6 percent threshold could draw more buyers back into the market and begin to weaken the “lock-in” effect that has kept housing inventory tight.

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

At Realtor.com, economist Jiayi Xu said, “While today’s borrowing costs remain high as 70 percent of mortgage holders have rates below 5 percent, it is far more encouraging than the high 6 percent or 7 percent ranges seen over the previous two spring seasons.”

Lowering rates seem to have been already boosting purchasing power. An analysis by Zillow found that the median-income U.S. household can now afford a $331,483 home—about $30,302 more than a year ago—and that roughly 82,300 additional listings have moved within reach compared with 2025. The real estate company said buying power is at its highest level since March 2022, before mortgage rates rose sharply.

“A more than $30,000 gain in buying power is meaningful for households that have been stretched thin by high rates,” said Kara Ng, a senior economist at Zillow, in a statement. “That doesn’t suddenly make this market affordable for everyone, but it does crack open doors that had firmly shut when rates peaked.”

Still, the affordability improvements may not necessarily feel significant for those looking for a home, as home prices remain near record highs after rising sharply since 2020.

According to the National Association of Realtors, the median price of an existing home was $396,800 in January, up 0.9 percent from a year earlier. It was the 31st consecutive month of year-over-year price gains.

Those price increases have boosted household wealth for existing homeowners, while renters have not seen comparable gains. President Donald Trump has said he wants to make buying a home easier by lowering interest rates, but he has also argued against price declines that would reduce homeowners’ equity.

“I can turn on housing immediately, but you make it too easy and you’re going to knock the value down of people that own houses,” Trump said at a Cabinet meeting in January. “For those people—those millions of people that own houses—we’re going to drive those values up, but we’re also going to try making it easier for people to buy.

“People that own their homes, we’re going to keep them wealthy. We’re going to keep those prices up. We’re not going to destroy the value of their homes so that somebody that didn’t work very hard can buy a home.”