Mortgage Rates Just Fell Below 6% — Why This Is Huge News for Homebuyers in 2026

In a move that many economists predicted wouldn’t happen until later this year, mortgage rates have officially dipped below the 6% mark — a milestone we haven’t consistently seen in nearly three years.

Recent data shows that the average 30-year fixed mortgage rate is now hovering as low as 5.98%, the lowest level in years.

For buyers who have been sitting on the sidelines waiting for affordability to improve, this is more than just a small drop in interest rates — it could be the turning point that re-energizes the housing market in 2026.

Why the 6% Threshold Matters

Over the past few years, mortgage rates climbed rapidly from pandemic-era lows near 3% to peaks above 7%, dramatically impacting affordability and slowing home sales nationwide.

Crossing back below 6% is important for several reasons:

• It significantly lowers monthly payments

• It increases buyer purchasing power

• It improves debt-to-income ratios for loan approval

• It brings more first-time buyers back into qualification range

In fact, the average 30-year mortgage rate was about 7.04% one year ago, meaning today’s rates represent a meaningful improvement in borrowing costs. 

Even a 1% drop in mortgage rates can save buyers hundreds of dollars per month — or allow them to afford tens of thousands more in home price without increasing their payment.

What This Means for Houston-Area Buyers

For buyers here in the Greater Houston area — especially in fast-growing communities like Bridgeland, Towne Lake, and The Woodlands — this shift may open doors that were financially out of reach just months ago.

Lower mortgage rates mean:

✔️ More buying power
✔️ More competitive loan approvals
✔️ Greater flexibility in home size or location
✔️ Potentially lower long-term interest costs

Many buyers who paused their home search in 2024 or 2025 due to affordability concerns may now find themselves back in a position to move forward with confidence. 

Will Rates Stay This Low?

Forecasts suggest mortgage rates may hover around the 6% range throughout 2026 — sometimes dipping below, sometimes rising slightly above — depending on inflation trends and bond market movement.

That means today’s dip could represent an early window of opportunity for buyers who are financially ready to act.

The Bottom Line

After several years of affordability challenges, mortgage rates falling below 6% may be the signal many buyers have been waiting for.

As borrowing costs improve, we could see:

• Increased homebuyer demand

• More movement among first-time buyers

• Greater activity in both resale and new construction markets

If you’ve been considering making a move in 2026, now may be the time to revisit your numbers and explore what today’s improved rates could mean for your home search.