Mortgage rates have dropped to their lowest level in more than three years, offering a welcome boost to the housing market as we head into the spring selling season. According to Freddie Mac, the average 30-year fixed mortgage rate fell to 6.06%, down from over 7% this time last year and the lowest level since September 2022. The 15-year fixed rate also declined, averaging 5.38%.

The recent dip follows market reaction to a proposal by Donald Trump, suggesting a large government purchase of mortgage-backed securities involving Freddie Mac and Fannie Mae. While economists caution this may be a temporary reprieve, the impact has been immediate—mortgage and refinance applications jumped by 30%, signaling renewed buyer interest.

Experts at Homes.com note that even a short-term reduction in rates can significantly improve affordability and confidence, especially as inventory and activity typically increase in spring. For buyers, it may mean lower monthly payments. For sellers, it could translate into more showings, stronger demand, and quicker sales.

Bottom line: Momentum is building, and the housing market appears poised for a stronger spring than many expected.

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