Rates Are at Their Lowest Point Since September 2022
If you've been sitting on the sidelines waiting for mortgage rates to come down, this is the moment you've been watching for. In mid-February 2026, the benchmark 30-year fixed mortgage rate dropped to 5.95%, according to Freddie Mac — the lowest level since September 2022.
The 15-year fixed rate has also declined, averaging around 5.09%, making it an attractive option for homeowners looking to refinance into a shorter term and save significantly on interest over the life of the loan.
What's Driving Rates Down?
Several macroeconomic factors are converging to push mortgage rates lower:
- Federal Reserve policy: The Fed has signaled a more accommodative stance heading into 2026, with rate cuts already underway since late 2025.
- Cooling inflation: Consumer price growth has moderated to levels closer to the Fed's 2% target, reducing upward pressure on long-term yields.
- Treasury yield decline: The 10-year Treasury yield — the benchmark that most closely tracks mortgage rates — has fallen steadily since the start of the year.
- Global economic uncertainty: Geopolitical tensions and slowing growth abroad have driven investors toward the safety of U.S. bonds, further compressing yields.
What the Experts Are Saying
According to Realtor.com's 2026 housing forecast, mortgage rates are expected to average around 6.3% for the full year. That means today's sub-6% rate could represent the low point — and the best window for buyers to lock in.
The Mortgage Bankers Association projects rates settling between 5.9% and 6.4% through 2026, with brief dips below 6% like the one we're seeing now.
What This Means for Colorado Buyers
For a typical Colorado home purchase at the state's median price of around $550,000, the difference between a 6.8% rate (where we were a year ago) and today's 5.95% rate translates to roughly:
- $260 less per month on a 30-year fixed mortgage
- $93,600 in savings over the life of the loan
- Approximately 12% more purchasing power on the same monthly budget
That's a meaningful improvement in affordability — especially for first-time buyers in competitive Front Range markets like Denver, Colorado Springs, and Fort Collins.
Should You Lock Now or Wait?
Timing the bottom of any rate cycle is nearly impossible. Here's the pragmatic approach:
- If you're financially ready and have found the right home, lock today. A rate in the low 5s is historically favorable and may not last.
- If you're still shopping, get pre-approved now. Knowing your rate and budget gives you a competitive edge when you find the right property.
- Consider a float-down option. Some lenders (including Cedar Home Loans) offer rate lock programs that let you benefit if rates fall further after you lock.
The Spring Market Is Coming
Lower rates typically increase buyer demand. As spring approaches, expect more competition for well-priced homes — particularly in the under-$500,000 segment along Colorado's Front Range. Getting pre-approved now positions you ahead of the seasonal surge.
Ready to see what today's rates mean for your buying power? Get pre-approved with Cedar Home Loans — we'll walk you through your options and help you lock the best rate available.
