Mortgage rates drop to under 6% for first time since 2022: Freddie Mac

Mortgage rates dropped to under 6% this week for the first time since 2022, according to mortgage buyer Freddie Mac on Thursday.

Freddie Mac's latest Primary Mortgage Market Survey showed the average rate on the 30-year fixed mortgage fell to 5.98% from last week's reading of 6.01%, FOX Business reported.

A year ago, the average rate on a 30-year loan was 6.76%. The last time the rate was under 6% was on Sept. 8, 2022, at 5.89%.

"This rate, combined with the improving availability of homes for sale, is meaningful and will drive more potential buyers into the market for spring homebuying season," said Freddie Mac’s chief economist, Sam Khater.

Meanwhile, the average rate on a 15-year fixed mortgage increased to 5.44% from last week's reading of 5.35%.

Several factors affect mortgage rates, including the Federal Reserve and geopolitics. Although the Fed's interest rate decisions do not directly affect mortgage rates, they closely track the 10-year Treasury yield. As of Thursday afternoon, the 10-year yield hovered around 4.02%.