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Mortgage Rates Hover Near 6%, Driving a Refinance Surge

Lower Treasury yields and softer inflation have nudged borrowing costs down.

Overview

  • Average 30-year purchase rates are now about 5.87% (Zillow) to 5.99% (Mortgage News Daily), with Freddie Mac’s latest weekly reading at 6.01%.
  • Refinance pricing remains higher, with the average 30-year refi around 6.35% as of February 23, according to Zillow.
  • Refinance demand jumped 7% week over week and is up 132% from a year ago, Mortgage Bankers Association data show.
  • Freddie Mac reports refinance applications have more than doubled year over year as many recent buyers cut annual mortgage costs by thousands of dollars.
  • Refinancing only pays if savings clear upfront fees of roughly 2%–5% of the loan and the break-even window—often 18 to 24 months—fits the homeowner’s plans, with caution about extending the loan term.