Mortgage Rates Just Dropped Below 6% — Is Now the Time to Buy?

For the first time since late 2024, the average 30-year fixed mortgage rate has dropped below the 6% mark.

According to CBS News, as of February 6, 2026, rates are hovering around 5.99% for a 30-year fixed mortgage and 5.37% for a 15-year term. Refinance rates are slightly higher at 6.53% for 30-year and 5.59% for 15-year options.

Freddie Mac's Primary Mortgage Market Survey shows the 30-year fixed averaged 6.11% as of February 5, while Bankrate reports 6.26% — the variation depends on the lender mix and timing of the survey.

If you've been sitting on the sidelines waiting for rates to come down, this might be your window.

What's Driving the Drop?

Mortgage rates loosely follow the 10-year Treasury yield, which has been hovering above 4.2% since mid-January but has shown signs of softening.

Several factors are contributing to the current rate environment:

• Inflation cooling: The Fed's aggressive rate hikes over the past two years are finally showing results
• Economic uncertainty: Some investors are moving to safer assets like bonds, which pushes yields (and mortgage rates) down
• Fed policy signals: Markets are pricing in potential rate cuts later this year

What This Means for Homebuyers

Let's put this in real dollars.

On a $400,000 home with 20% down ($320,000 loan):

• At 6.5%: Monthly payment of $2,023
• At 5.99%: Monthly payment of $1,917

That's $106/month savings — or $1,272 per year — just from the half-point rate drop.

Over the life of a 30-year loan, that's over $38,000 in savings.

Should You Buy Now?

The million-dollar question. Here's my take:

Consider buying now if:

• You've found a home you actually want (don't buy just because rates dropped)
• You have a 20% down payment ready (or close to it)
• You have stable income and job security
• You plan to stay in the home for 5+ years
• You've already been house hunting and know the market

Wait if:

• You don't have your finances in order (emergency fund, down payment)
• You're hoping rates drop further (possible, but not guaranteed)
• You're buying purely because of FOMO
• The homes in your price range still don't make financial sense

What About Refinancing?

If you bought in 2023 or early 2024 when rates were 7%+, refinancing could make sense.

The rule of thumb: refinancing is worth it if you can drop your rate by at least 0.5-0.75% and you plan to stay in the home long enough to recoup closing costs (typically 2-4 years).

Current refi rates at 6.53% (per CBS News) mean:

• If you're at 7.5%+, it's probably worth running the numbers
• If you're at 7% or below, the savings may not justify the costs yet

Will Rates Keep Dropping?

Nobody knows for sure. Here are the scenarios:

Rates could fall further if:

• Inflation continues cooling
• The economy weakens and the Fed cuts rates
• A recession pushes investors into bonds

Rates could rise again if:

• Inflation proves sticky
• The economy runs hotter than expected
• Treasury yields spike on deficit concerns

My take: Rates below 6% are good by recent standards. If you find the right home at the right price, locking in now is reasonable. Waiting for 4% rates again might mean waiting years — or forever.

The Bottom Line

Sub-6% mortgage rates are a meaningful improvement from where we were. For qualified buyers who've been patient, this could be a good entry point.

But remember: the rate is just one factor. The home price, your financial readiness, and how long you'll stay matter just as much.

Don't let a rate drop pressure you into a bad decision. But if the stars are aligning, this might be your moment.

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Sources: CBS News, Freddie Mac PMMS, Bankrate. Rates as of February 6, 2026.