Mortgage Rates Fall Below 6% for First Time Since 2022, Potentially Thawing Frozen Housing Market

The average home loan rate has dropped below 6% for the first time since 2022, raising hopes that the frozen American housing market may finally begin to thaw. The milestone decline in borrowing costs comes as the Federal Reserve's interest rate cuts work their way through the financial system, offering potential relief to millions of prospective homebuyers who have been sidelined by the combination of high rates and elevated home prices. The drop could stimulate a wave of new purchasing activity and refinancing, though economists caution that home prices remain historically high and inventory remains tight in many markets.