Mortgage rates have dropped below 6% for the first time since 2022, marking a significant shift in the housing market. Freddie Mac reported the average 30-year fixed rate at 5.98%, while Treasury yields have been falling since February amid economic uncertainty. This milestone follows three months of gradual rate declines that are now filtering through the mortgage industry.

Sam Khater, chief economist at Freddie Mac, called the development 'meaningful' and said it could drive more buyers into the market for spring homebuying season. The 5% range represents a psychological threshold for many potential buyers who have been priced out of the market in recent years. Zillow's Kara Ng noted that buying power has already increased by $30,000 compared to last year.

Treasury yields have declined amid concerns about AI acceleration, tariff uncertainty, and inflation, with some analysts suggesting another Federal Reserve rate cut could be delayed. The 15-year fixed rate also saw movement, rising nine basis points to 5.44%. With home availability improving and rates at three-year lows, real estate experts anticipate increased activity as buyers reassess their options in a more favorable lending environment.