US Home Loan Rates Drop to Lowest Level Since 2022, Encouraging More Refinancing

US Mortgage Rates Reach Lowest Point Since 2022

According to recent data, mortgage rates in the United States have fallen to their lowest levels since 2022, prompting a surge in refinancing applications.

The average interest rate for a 30-year fixed mortgage decreased by 8 basis points, settling at 6.09% for the week ending February 20, as reported by the Mortgage Bankers Association. Similarly, rates for five-year adjustable mortgages dropped to 5.23%, marking the lowest point since September 2022.

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Refinancing activity has climbed by over 4%, reaching its second-highest level in the past five months. So far this year, only two weeks have seen a decline in refinancing, based on MBA statistics.

Despite the nearly quarter-point drop in mortgage rates since the start of the year, homebuyer demand remains subdued. The MBA’s index tracking mortgage applications for home purchases fell 4.7% last week, hitting its lowest mark since April, highlighting ongoing challenges in the housing market.

New-home sales saw improvement at the close of 2025, aided by incentives from builders. The resale market also ended the year on a positive note, suggesting the real estate sector may be showing early signs of recovery after a prolonged slump. However, persistently high home prices continue to be a hurdle for many buyers.

With mortgage rates hovering just above 6%, there is potential for increased buyer interest as the spring selling season approaches. Last month, President Donald Trump called on Fannie Mae and Freddie Mac to acquire $200 billion in mortgage-backed securities, aiming to further reduce borrowing costs for homebuyers.

The MBA’s weekly survey, which has been conducted since 1990, gathers responses from mortgage lenders, commercial banks, and savings institutions. The data represent over 75% of all retail residential mortgage applications in the United States.

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