Overview
- Freddie Mac’s weekly survey put the 30-year fixed average at 5.98% for Feb. 26, the lowest since September 2022, with other measures hovering from the high-5% to low-6% range.
- Refinance applications have surged year over year as costs drop, while purchase demand has been slower to respond in many areas, industry data show.
- The decline tracked a lower 10-year Treasury yield after a Supreme Court tariff ruling and ensuing policy moves prompted a flight to safer assets, according to analysts.
- FHFA-directed purchases of agency mortgage bonds and Federal Reserve policy expectations are part of the backdrop, though their effects on rates are uncertain and could take months to materialize.
- Analysts say a rate that starts with a five may entice more buyers and potential sellers this spring, yet low inventory and the rate-lock effect are likely to cap any sustained rebound.