Could mortgage interest rates ever be 3% again? 3 things to know this March

The week of September 8, 2022. That was the last time in which FreddieMac, the Federal Home Loan Mortgage Corporation, had the average 30-year mortgage interest rate listed under 6%.

Until this week.

On Thursday, the average mortgage rate for a 30-year term, according to the corporation, dropped to 5.98%, its lowest level since it sat at 5.89% in the summer of 2022. And while mortgage interest rates, overall, have been averaging a bit lower in recent weeks (Zillow has consistently listed them in the high 5% range, for example), there's something about seeing FreddieMac listing them under 6% that can feel psychologically motivating for borrowers. For many, when FreddieMac starts listing competitive rates again, it can serve as official confirmation that they can confidently re-enter the market.

At the same time, 5.89% is still significantly above what borrowers were being offered around this time in 2020 and 2021. So it may feel tempting to continue waiting in the hopes that rates will decline even further, perhaps even back to the 3% range many borrowers were accustomed to at the start of the decade. But could mortgage interest ever actually be that low again? Below, we'll break down three things borrowers should consider as they compare today's new, lower rates versus the ideal 3% they were hoping to otherwise receive.

Start by seeing how low your current mortgage rate offers are here now.

Could mortgage interest rates ever be 3% again? 3 things to know this March

While there's no definitive way to determine if mortgage interest rates will continue falling all the way back to 3%, there are some timely (and historical) items borrowers should consider now, as they enter March, when rates could easily change again. Here are three to contemplate:

3% mortgage rates were an anomaly (not the norm)

The average 2.50% to 3.50% mortgage interest rates from 2020 and 2021 may have felt ubiquitous at the time but the reality is that those were an anomaly and not the norm. In fact, historically, mortgage rates typically sit closer to where they are now versus what they were five or six years ago. And a closer look at recent decades even shows mortgage interest rates listed in the double digits. So while it may not be the news buyers were looking for, it helps to know that today's rates are actually the competitive ones. Betting on the abnormal lows to return anytime soon, then, is something most experts and mortgage lenders would advise against, even if they look to potentially fall further into March.

Learn more about your current mortgage rate options here.

Mortgage rates have already considerably improved

The average mortgage interest rate on a 30-year term sat just over 7% in January 2025. So in just over one year, there's been considerable improvement here, largely thanks to an extended interest rate-cut campaign from the Federal Reserve. Inflation and unemployment have also improved, however, proving that mortgage rates are driven by a complex interplay between multiple factors. 

In other words, buyers shouldn't give themselves an ultimatum between the 3% rates of the past versus what's available now, as the interest rate climate is consistently improving. While rates under 4% still seem unlikely, it's possible that the trend in that direction could continue from 2025 throughout the remainder of 2026, too.

Waiting for a lower rate this spring is risky

While the chances of an interest rate cut at the Federal Reserve's March meeting currently appear to be low, the likelihood of a cut increases later this spring. So it may naturally be tempting to wait for that reduction and the impact it could have on mortgage interest rates before taking action now. But there is no realistic cut that will lead to mortgage rates close to 3% this spring. 

And waiting could be risky, as today's cooler rate environment is already likely to entice more buyers to the market and result in increased competition. Depending on how that plays out, sellers may also raise their prices to take advantage of this renewed interest. In other words, be strategic in your mortgage rate approach but be realistic, too, as waiting for an ideal rate has significant pros and cons.

The bottom line

The chances of mortgage rates declining again to 3%, at least in the foreseeable future, appear low this March. But that doesn't mean that this mortgage interest rate climate is unfavorable to borrowers. It isn't. Rates have experienced a considerable recent decline and, historically, they're about in line with what they have been in the past. So waiting for a perfect rate could be particularly risky, especially in the face of increased homebuying competition this spring. To better determine your home purchasing timeline, consider speaking with a mortgage lender directly who can answer any questions you may have and thoroughly explain all of your existing mortgage rate options.