Mortgage rate falls to lowest level since 2022

A sharp stock market selloff pushed investors into bonds Monday, driving yields lower and pulling mortgage rates down.

The average 30-year fixed rate fell to 5.99%, matching its lowest level since 2022, according to Mortgage News Daily. A year ago, the rate was 6.89%.

The drop followed cooling inflation, new tariff uncertainty, and a weak gross domestic product report that signaled economic slowdown.

Analysts say this time, rates may stay lower if the 10-year Treasury yield holds near or below 4%.

Lower rates are fueling refinancing. The Mortgage Bankers Association says refinance applications have jumped 130% from a year ago.

Affordability is also improving. On a $400,000 home with a 20% down payment, monthly payments fall to about $1,916, down from $2,105 last year.

Economists estimate up to 5.5 million more households now qualify for mortgages, potentially adding 550,000 buyers this year.