US mortgage rates hit 3-year low, reviving housing hope

US mortgage rates have fallen sharply in early 2026, reaching their lowest level in over 3 years. Softer inflation, lower bond yields, and strong demand for mortgage-backed securities are easing borrowing costs. Buyers and homeowners gain relief through affordability and refinancing, while tight housing supply and cautious outlooks temper expectations for the rest of the year across US market.