Mortgage rates drop below 6%, matching lowest level since 2022
CNBC • • business
Key Points:
- A stock market sell-off prompted investors to seek safety in bonds, causing yields and mortgage rates to drop, with the average 30-year fixed mortgage rate falling to 5.99%, its lowest level since 2022.
- Factors contributing to the yield drop include tariff uncertainties, cooling inflation, and weak economic growth as indicated by a recent GDP report.
- The current mortgage rate decline is expected to be more sustainable than a brief dip in January, potentially leading to further incremental rate decreases if bond market conditions improve.
- Lower mortgage rates have spurred a surge in refinancing applications, which are about 130% higher than a year ago, and are expected to increase homebuyer purchasing power entering the spring housing market.
- Despite
