Mortgage Interest Rates Today: Rates Fall to 5.98%—the Lowest Since September 2022

Mortgage rates continued their downward drift Thursday, plunging to their lowest level in more than three years in line with the 10-year Treasury yield due to a new wave of uncertainty over President Donald Trump's tariffs. 

The average rate on 30-year fixed home loans fell to 5.98% for the week ending Feb. 26, down from 6.01% the week before, according to Freddie Mac. For perspective, rates averaged 6.76% during the same period in 2025.

"For the first time in three and a half years, the 30-year fixed-rate mortgage dropped into the 5% range, falling even lower than last week's milestone," said Sam Khater, Freddie Mac's chief economist. “This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for spring homebuying season."

The rates slid into the high 5% range for the first time since early September 2022, after the U.S. Supreme Court struck down the Trump administration's broad emergency tariff powers in a 6-3 decision, which the president decried as a "disgrace to our nation" in a Truth Social post.  

Writing for the majority, Chief Justice John Roberts ruled that the International Emergency Economic Powers Act did not grant Trump "an open-ended license to rewire the Nation’s tariff schedule."

Trump responded to the setback by immediately invoking alternative "Section 122" authority to impose new temporary duties. 

"This legal tug-of-war has triggered a flight to safety among investors, pushing bond prices higher and yields lower, helping mortgage rates settle around 6%," says Realtor.com® economist Jiayi Xu. "However, as this week’s decline stems from market volatility rather than fundamental economic data, the path forward remains uncertain."

At the same time, Xu points out that the stabilization of mortgage rates near 6% this spring marks a notable turning point where, for the first time since the post-pandemic spike, the psychological barrier of the 5% range finally feels within reach. 

Since the national inventory recovery has recently stalled, a lower rate has the potential of prompting more homeowners who were previously "locked in" to finally get off the sidelines and back into the market. 

"While today’s borrowing costs remain high as 70% of mortgage holders have rates below 5%, it is far more encouraging than the high 6% or 7% ranges seen over the previous two spring seasons," adds Xu.  

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield which reflects broader market trends, like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to increase. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates to fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

How your credit score affects your mortgage

Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.

The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.

Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates.

Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. They want to make sure you're able to pay back the loan.