Mortgage rates have dropped to their lowest levels in years, with the 30-year fixed rate hitting 5.79% according to Zillow data. The decline comes as the 10-year Treasury yield has fallen nearly 2% over the past week, driven by stock market volatility and investor flight to bonds. This marks a significant shift from rates above 6% that have persisted for much of the past year.

Today's rates show 30-year fixed mortgages at 5.79%, while 15-year fixed rates are at 5.34%. Refinance rates are slightly higher, with 30-year refi rates at 5.94%. The drop in rates is attributed to market jitters around AI stocks and expectations that the Federal Reserve may delay its next interest rate cut to June. As bond prices rise, yields fall, creating favorable conditions for mortgage borrowers.

Homebuyers and homeowners looking to refinance now have an opportunity to lock in historically low rates. The difference between current rates and those from just a few months ago could save borrowers thousands in interest over the life of their loans. With rates this low, both 15-year and 30-year fixed mortgages offer compelling options, though the choice depends on individual financial goals and monthly payment preferences.