WASHINGTON, Feb 26 (Reuters) – The average rate on the popular U.S. 30-year fixed-rate mortgage fell below 6% this week for the first time in 3-1/2 years, but the decline is likely temporary and on its own insufficient to significantly boost housing demand unless supply increases, said economists.

The 30-year fixed mortgage rate averaged 5.98%, the lowest level since September 2022, down from 6.01% last week, mortgage finance company Freddie Mac said on Thursday. It averaged 6.76% during the same period a year ago.