Mortgage Rates Drop Below 6% for the First Time Since 2022
What This Means for Home Buyers and Sellers in Downers Grove
For the first time in nearly two years, mortgage interest rates have officially dropped below 6% and that single shift is already sending shockwaves through the housing market. On Friday, the 30-year fixed mortgage rate fell to 5.99%, marking the first time it has dipped below 6% since February 2023. For buyers who have been sidelined by high borrowing costs and for homeowners waiting to list, this is a game-changing moment. If you’re looking to buy or sell a home in Downers Grove, Lisle, Woodridge, Westmont, Naperville, or the western suburbs, this could be the most important housing development we’ve seen since the post-pandemic surge.
Why Mortgage Rates Suddenly Dropped Below 6%
The rate drop didn’t happen by accident.
President Donald Trump announced that his administration instructed “representatives” to purchase $200 billion in mortgage-backed securities, bonds tied to home loans issued by Fannie Mae and Freddie Mac. These purchases directly push mortgage rates down by increasing bond prices and lowering yields. Within hours of the announcement, markets reacted. The spread between mortgage rates and Treasury yields collapsed, forcing lenders to lower consumer borrowing costs, and that’s how the 30-year mortgage landed at 5.99%.
In simple terms:
- The federal government applied pressure to the mortgage market
- Mortgage bond yields fell
- Lenders passed those savings to buyers
What a 5.99% Mortgage Means for Real Buyers
At a 5.99% rate:
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A buyer purchasing a $400,000 home
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With 10% down
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Will pay roughly $2,500 per month
Just three months ago, that same payment was hundreds more.
In DuPage County that difference moves many buyers from:
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Condo → Townhome
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Townhome → Single-family
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Starter home → Move-up home
Affordability improves immediately.
Why This Could Trigger a Housing Surge in 2026
Real estate economists are already calling this shift historic. Rick Palacios Jr. of John Burns Research summed it up perfectly:
“2026 could be the first spring season since 2022 where resale buyers can buy with a 30-year mortgage starting with a 5.”
For years, only new construction builders could offer low rates using expensive rate buydowns. That gave them a massive edge over existing homes. Now that edge is disappearing.
That means:
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More buyers shopping resale homes
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More competition for listings
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Faster sales
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Higher prices
And that’s exactly what we are already seeing locally.
What We’re Seeing Right Now in Downers Grove & Nearby Towns
At The Glover Team, we’re seeing buyer behavior shift in real time:
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Listings that sat quietly are suddenly getting multiple offers
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Showings are filling up again
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High-end homes over $1M are seeing renewed activity
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Buyers are calling lenders asking to lock rates immediately
Lower rates don’t just increase affordability. They increase confidence, and confidence is what moves markets.
What This Means If You’re Thinking About Selling
If you own a home this rate drop is likely to bring more buyers into your price range than you’ve seen in over two years. More buyers = More showings, More offers, Stronger pricing, Less negotiating. This is the exact market shift sellers have been waiting for.
What Buyers Should Do Right Now
If you’re thinking about buying:
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Get pre-approved immediately. Reach out for one of The Glover Team's trusted mortgage lender partners,
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Lock your rate while it’s under 6%
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Start searching before competition heats up
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Work with a hyper-local Realtor who knows how to win in multiple-offer markets
This kind of rate movement can change fast, but buyers who move early usually get the best homes and the best deals.
Why This Matters More in the Western Suburbs
Markets like DuPage County are extremely sensitive to rate changes because they are full of:
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First-time buyers
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Move-up families
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Commuters who compare payment-to-rent costs
When rates drop below key psychological thresholds (like 6%), demand doesn’t just rise — it surges.
Work With a Local Downers Grove Real Estate Expert
At The Glover Team, we don’t just watch the market, we operate inside it every day.
We help buyers:
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Win bidding wars
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Structure competitive offers
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Navigate fast-moving markets
And we help sellers:
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Price strategically
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Maximize demand
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Create multiple-offer situations
If you want to know how this rate drop affects your buying power or your home value, we’re here to help.
Frequently Asked Questions
Why are mortgage rates dropping right now?
Mortgage rates fell after the federal government announced plans to purchase mortgage-backed securities. This increases demand for mortgage bonds, lowers their yields, and allows lenders to offer lower interest rates to home buyers.
Is 5.99% really a big deal?
Yes. Mortgage rates below 6% haven’t been available since early 2023. Even a small drop like this can save buyers hundreds of dollars per month, significantly increasing purchasing power in markets like Downers Grove, Lisle, and Westmont.
Will this bring more buyers into the market?
Absolutely. Lower rates unlock pent-up demand from buyers who paused their home search due to affordability. We’re already seeing increased showings and multiple-offer situations across the western suburbs.
Is now a good time to buy a home in Downers Grove?
For many buyers, yes. Lower rates mean more buying power and better loan options. Buying before competition heats up further could help you secure a home at better terms.
Should I sell my home now or wait?
This rate drop is expected to bring more buyers into the market, which can lead to faster sales and stronger offers. Many homeowners are choosing to list now to take advantage of rising demand.
Can mortgage rates go even lower?
They could. Some economists believe rates may move into the mid-5% range if government bond purchases continue, which would further fuel buyer demand and price competition.
Thinking of buying or selling in 2026?
Now is the time to start the conversation.
The Glover Team
Downers Grove’s #1 Real Estate Team
Serving DuPage County and Chicago’s Western Suburbs
