Average FRM decreases to 6%
On Feb. 24, 2026, the National Association of Homebuilders announced that the average interest rate on a 30-year fixed-rate mortgage (FRM) fell to around 6% last week. This is the lowest rate borrowers have seen in almost three years.
To begin 2026, the 30-year FRM averaged 6.25%. At that rate, around 31.5 million households could afford a new home at the national median price of $413,595, per lender underwriting standards. A modest 25 basis-point rate reduction from 6.25% to 6% would lower the qualifying income threshold sufficiently to allow 1.42 million additional households to afford a median-priced new home.
This sizable affordability response reflects the underlying distribution of U.S. household incomes. Household incomes are heavily concentrated in the middle of the distribution, with many households near key affordability thresholds.
