U.S. 30-year mortgage rates dropped to 5.99% on Monday, marking the first time since 2022 that rates have fallen below the 6% threshold, according to Mortgage News Daily. The decline follows a broader market sell-off that pushed investors toward bonds, driving yields lower and mortgage rates down in tandem.

Rates stood at 6.89% a year ago, making this a significant shift for potential homebuyers and those looking to refinance. The drop stems from multiple factors including new uncertainty over tariffs, cooling inflation, and economic weakness highlighted in Friday's GDP report. Matthew Graham, chief operating officer at Mortgage News Daily, noted that this decline appears more sustainable than a brief dip into the 5% range seen in January.

Refinancing applications have surged, with activity now about 130% higher than a year ago according to the Mortgage Bankers Association. Graham suggested that as long as the broader bond market doesn't experience a major sell-off, mortgage rates have a better chance of remaining near current levels. If 10-year yields dip below 4.0%, mortgage rates could see further incremental gains, potentially driving even more refinancing activity in the weeks ahead.