Mortgage interest rates just fell to a 3-year low. Here's why (and what to do now).

Mortgage interest rates just hit their lowest level since 2022, encouraging borrowers to act strategically now. Dragon Claws/Getty Images

After years of elevated borrowing costs, mortgage interest rates have just taken a sharp turn lower, and homeowners and buyers are taking notice. According to the latest rate data from the Mortgage News Daily, 30-year fixed mortgage rates have dropped to an average of 6.13% . That's the lowest level in three years, and represents a steep decline from the 7% (or higher) rates that defined much of the housing market over the past two years.

The shift has already sparked activity. As a result of the rate drop, both mortgage loan applications and mortgage refinancing applications have surged, according to the Mortgage Bankers Association's seasona