Mortgage Rates Dip Under 6% as Top Lenders Post Sub‑6% APRs

Mortgage rates fell below 6% in a Feb. 23 survey of national lenders, led by a credit union whose annual percentage rate dipped under 5. 5%, a move that left the spread between the top and bottom offers at 1. 311 percentage points.

Mortgage Rates dip below 6% in 16‑lender survey

The weeklong snapshot of 30‑year, fixed‑rate conventional loans surveyed 16 national lenders and found 11 offering APRs below 6% on Feb. 23. Seven lenders showed sub‑6% APRs once lender fees were included in the annual percentage rate, a figure that incorporates interest and typical lender charges such as an origination fee.

National average rates, as measured weekly by Freddie Mac, remain just above 6%, while sample rates pulled from lender websites for the survey produced a wider band of offers in the marketplace.

Navy Federal leads; Third Federal at the bottom

The top-ranked offer in the survey came from Navy Federal, which posted an APR under 5. 5% that week. At the other end of the list, Third Federal occupied the lowest position; the difference in APR between Navy Federal and Third Federal measured 1. 311 percentage points. Several large banks — U. S. Bank, Bank of America, PNC, Flagstar Bank and Rocket Mortgage — did not make the survey’s top 10 that week.

How APR, discount points and shopping affect what you pay

The survey emphasizes APR as the most complete single number for comparing offers because it folds in both interest rates and lender fees. Where lenders required more borrower details to produce a tailored quote, the survey used a set of sample assumptions: a median home value, a median credit score and a 20% down payment on a home located in the Midwest.

Discount points — prepaid interest paid at closing to lower the headline interest rate — can complicate advertised offers. The survey material gives a concrete example: one point on a $400, 000 mortgage would cost $4, 000 and could reduce a 6. 25% interest rate to 6. 00%.

Shopping multiple lenders remains a clear takeaway from the survey. An analysis cited in the survey estimated that comparing offers could save borrowers up to an average of $44, 000 over the life of a 30‑year loan.

The findings were drawn from sample mortgage rates posted on lender websites and reflect generic assumptions; lenders advertise 30‑year rates based on varying credit scores, down payments and other credit qualifications, and offers can change with borrower details and local conditions.

Freddie Mac’s weekly national average will publish again as part of the regular series of rate readings, and those updates will show whether national averages stay above 6% or move in step with the lender offers captured in the Feb. 23 survey.