Mortgage Rates Fall Below 6%: What It Means for Home Prices & Investors

Mortgage rates have officially dropped below 6% for the first time in more than three years. The average 30-year fixed rate is now 5.98%, according to Freddie Mac — a key psychological and financial shift for the housing market.

In this episode, Kathy breaks down what lower rates mean for buying power, inventory levels, and home prices. Zillow reports that the median-income household has gained more than $30,000 in purchasing power compared to last year, putting over 80,000 additional homes within reach. But with prices still up roughly 50% since 2020 and rising for the 31st straight month, affordability remains a challenge.

Will sub-6% rates bring buyers back into the market? Could it loosen the lock-in effect and increase listings? And what does this mean for real estate investors in 2026?

We'll explain what's changing — and what isn't.

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Source: https://www.cnn.com/2026/02/26/economy/mortgage-rate-falls-below-six-percent