The pandemic-era days of 3% mortgage rates are behind us, but today’s rates have lowered to just above 6%. With rates trending downward, homebuyers may wonder whether now is the time to buy or to wait for further declines.
Understand how rates have changed — and what they mean for affordability and home sales — to consider whether you should act on a 6% mortgage rate.
[Compare: Compare Current Mortgage Rates]
Mortgage Rate Trends
Today’s mortgage rates may seem high to buyers who remember extremely low pandemic-era rates, but they are the lowest they’ve been in about three years.
We saw the average 30-year fixed mortgage rate fall below 3% in 2020 and 2021 as the Federal Reserve slashed interest rates to stabilize the economy. Those rates are the lowest in the history of the Freddie Mac Primary Mortgage Market Survey, which tracks mortgage rates dating back to 1971.
Rates rose sharply in 2022 with aggressive rate hikes, reaching over 7% toward the end of the year, and continued to rise in 2023 and 2024, spiking to nearly 8%. Throughout 2025 and into 2026, rates have mostly remained below 7% with a slow but steady downward trend. Today’s rates near 6% are a step down from recent peaks but remain well above the pandemic-era lows.
“A 6% rate definitely changes the math for buyers, especially compared to the ultralow rates during the pandemic, but it’s also much better than the 7% and nearly 8% rates in the years after the pandemic,” says Darren Tooley, senior loan officer at Cornerstone Financial Services in Southfield, Michigan. “Mortgage rates are lower today than we have seen in the past few years, which does help affordability.”
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How 6% Rates Translate to Affordability and Home Sales
Mortgage rates directly affect monthly payments and how much buyers can afford to spend on a home. Monthly payments can shift by hundreds of dollars with rate changes.
Let’s compare payment and interest on a $350,000 home with 20% down at 6% and 7% rates. With a 7% mortgage, you’d pay $184 more each month, or about $66,260 in total interest over the life of the 30-year loan.
“The 6% rate will certainly help with the perception of affordability compared to the last few years,” says Chris Parks, loan officer at Churchill Mortgage in Glen Allen, Virginia.
High mortgage rates can slow home sales, as higher monthly payments prompt some buyers to pause their searches. Those buyers may return to the market when rates become lower or more stable.
Still, home affordability depends on more than mortgage rates. Moderate home prices and inventory shortages can limit buyers’ options, even when mortgage rates are lower.
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Will 3% Mortgage Rates Return?
Ultralow mortgage rates in 2020 and 2021 were a result of extraordinary conditions, and homebuyers shouldn’t expect similar rates anytime soon.
“The 3% interest rate phenomenon was an artificial market created by the global pandemic,” says Parks. “Unless there is a significant slowdown in the international market driven by an issue with global consequences, it is unlikely there will be a return to the 3% range.”
If you’re waiting for mortgage rates to fall back to pandemic-era lows, you could be waiting a while. It’s not a practical strategy for most buyers, as home prices trend upward over time, and life plans can’t pause while you watch rates.
What to Focus on Instead of Timing Rates
While mortgage rates are on a downward trend, it’s tough to predict exactly where they’ll go next, and it can be risky trying to time your home purchase with a perfect rate.
Rather than focusing on whether you’ll see a slightly lower rate, look at the broader picture:
— Monthly payment affordability: Calculate your housing payment and consider whether it fits your budget.
— Rate shopping: Rates and fees vary between lenders, so you could see lower costs by comparing offers.
— Long-term plans: The longer you plan to own the home, the less short-term rate changes matter.
— Refinancing: You may be able to refinance and get a lower payment if rates drop meaningfully in the future, but you can’t retroactively buy a home at today’s price.
“Mortgage rates fluctuate every day, and the future rate outlook is often already priced into current rates,” says Bhavesh Patel, consumer channel executive at Chase Home Lending. “It’s important to move quickly when rates do drop. Rate changes can be sudden and fairly unpredictable, which is why we advise borrowers to try not to time the market, as it’s nearly impossible to do with any precision.”
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Will 6% Mortgage Rates Become the New Normal originally appeared on usnews.com
