Mortgage Rates Break Into the 5% Range Again
We’re checking in earlier than usual today because the news is actually worth the early start: average 30-year fixed mortgage rates just hit 5.99%.
This is a milestone we haven't seen since a very brief window on January 9th. However, today’s landscape feels a bit different—and arguably more stable. Here is the breakdown of what’s happening and what it means for you.
Why This Time Feels Different
While hitting the "5s" is exciting, it’s important to look at how we got here.
Steady Progress: Back in January, rates plummeted overnight by 0.20%—a "flash in the pan" move that was hard to sustain. Today’s drop was a modest 0.05% from Friday. This gradual slide suggests the market is finding a more comfortable, sustainable floor.
Government Support: There isn't a single "breaking news" event driving this. Instead, it’s the result of Fannie Mae and Freddie Mac consistently buying mortgage bonds, which keeps the market healthy and rates leaning lower.
Market Momentum: The broader bond market is currently at its strongest level since last November.
A Note of Caution
In the mortgage world, things move fast. There is always a risk that the bond market could pivot before the day ends. If that happens, lenders might "reprice," meaning they could hike rates back up by this afternoon.
The Bottom Line: We are seeing the best rates in months, and unlike the spike in January, this improvement feels earned rather than reactive.
