The benchmark 30-year fixed rate mortgage rate dropped to 6.06% this week, down from 6.16% last week, mortgage buyer Freddie Mac said Thursday

The average long-term U.S. mortgage rate is now down to its lowest level in more than three years.

The benchmark 30-year fixed rate mortgage rate dropped to 6.06% this week, down from 6.16% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 7.04%.

The last time the average rate was lower was September 15, 2022, when it was at 6.02%.

Meanwhile, borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also dropped this week, declining to 5.38% from 5.46% last week. A year ago, that average rate was at 6.27%, Freddie Mac said.

Mortgage rates began declining in July in anticipation of a series of U.S. central bank rate cuts, which began in September and continued last month.

The central bank doesn’t set mortgage rates, but when it cuts its short-term rate that can signal lower inflation or slower economic growth ahead, which can drive investors to buy U.S. government bonds. That can help lower yields on long-term U.S. Treasurys, which can result in lower mortgage rates.

The decline in mortgage rates helped drive sales of previously occupied U.S. homes higher on a monthly basis the last four months of 2025. Even so, home sales remained stuck at a 30-year low last year, extending the housing market’s slump into its fourth year.

Lower mortgage rates have been helpful for home shoppers who can afford to buy at current rates. The median U.S. monthly housing payment declined to $2,413 in the four weeks ending January 11, according to Redfin. That’s a 5.5% drop from the same period a year earlier and near the lowest level in two years.

With mortgage rates much lower than a year ago and edging closer to 6%, MBA expects strong interest from homeowners seeking a refinance and would-be buyers stepping off the sidelines, said MBA CEO Bob Broeksmit.