Mortgage interest rates have dropped to their lowest level since September 2022, according to Freddie Mac.
The average rate for a 30-year fixed mortgage is now 6.01%, and the 15-year fixed mortgage is 5.35%.
Sam Khater, the chief economist at Freddie Mac, said mortgage rates fell again this week and are now at their lowest point since September 2022.
Although it is only early in 2026, this is not the first time mortgage rates have fallen this year. Last month, rates also dropped to their lowest level in three years.
Lower mortgage rates are good news for people who want to buy a home. When rates go down, monthly payments become more affordable. This can help new buyers enter the housing market or allow homeowners to borrow against their home’s value using options like a HELOC.
Current mortgage rates
As of February 19:
The 30-year fixed mortgage rate averages 6.01%.
The 15-year fixed mortgage rate averages 5.35%.
Compared with last week:
The 30-year rate fell 0.08%.
The 15-year rate fell 0.09%.
Compared with the same time last year:
The 30-year rate is 0.74% lower.
The 15-year rate is 0.69% lower.
Why mortgage rates dropped
Mortgage rates went down mainly because the 10-year Treasury yield also fell.
Mortgage rates are not directly tied to it, but they usually move in the same direction as the 10-year Treasury yield. This yield reflects investors’ expectations about the economy, inflation, and future interest rates.
Last week, the 10-year Treasury yield dropped 0.125% in two days. As of February 20, it is 4.029%.
More people applying for home loans
There has been an increase in people applying for mortgages to buy new homes in 2026.
Data from the Mortgage Bankers Association shows:
Mortgage applications for new homes were 2% higher than January last year.
Applications were 19% higher than the previous month.
Mortgage affordability is improving
Lower rates are making mortgages more affordable. One sign of this is the rise in refinancing.
More homeowners are applying to refinance their mortgages so they can lower their monthly payments.
Khater said refinance applications have more than doubled over the past year, allowing many homeowners to save thousands of dollars each year on mortgage payments.