Mortgage rates fell to their lowest level in nearly four years last week, but lower borrowing costs have yet to revive homebuyer demand, according to data from the Mortgage Bankers Association.
The average rate on a 30-year fixed mortgage dropped to 6.09%, the lowest since September 2022. Overall mortgage application volume was largely unchanged, rising just 0.4% from the prior week.
Mortgage rates hit lowest level in nearly 4 years, but homebuyers are still stuck on the sidelines https://t.co/ewBtQjGeQY
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Refinancing activity continued to climb. Refinance applications rose 4% from the previous week and surged 150% from a year earlier, reflecting the sharp decline in rates. Activity, however, remains low compared with historical levels.
Home purchase applications fell 5% for the week, even as affordability improved. Higher home prices and economic uncertainty continue to weigh on buyers. Redfin reported nearly 40,000 canceled home-sale agreements in January, the highest share for the month since 2017.
Some borrowers are turning to adjustable-rate mortgages to lower monthly payments, the MBA said.
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