If March’s mortgage rate trajectory is a sign of things to come, April will be the cruelest month for prospective homebuyers thus far in 2026.
The 30-year fixed-rate mortgage jumped 16 basis points over the past week to land at an average of 6.38%, according to Freddie Mac data released Thursday. The 15-year fixed rate gained 21 basis points, rising from 5.54% to 5.75%.
In commentary released with the weekly rate survey, Freddie Mac Chief Economist Sam Khater framed the current rate environment in historical context.
“The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility,” Khater stated. “Purchase and refinance applications are up year over year, and rates remain lower than last year when they averaged 6.65%.”
But the Mortgage News Daily Rate Index, which tracks daily changes in lender rate sheets, put the 30-year rate at 6.55% as of Thursday, a 0.55% increase from a month prior.
Mortgage rates move in close concert with U.S. Treasury yields, which have traveled on a steady upward path over the past month.
The 10-year Treasury yield stood near 4.42% as of midday Thursday. That’s an increase of nearly 50 basis points from Feb. 27, sparked by the U.S. and Israel’s joint airstrikes on Iran and fanned by the ensuing global oil shock from the Strait of Hormuz closure.
The 2-year Treasury yield breached the 4% threshold just prior to this article’s publication, while a 7-year note auction conducted Thursday attracted weak demand from investors, according to The Wall Street Journal.
Meanwhile, as optimism about a potential ceasefire in the Middle East turned to pessimism, Brent crude oil again fetched over $100 a barrel on Thursday.
The increase in borrowing costs has put a noticeable dent in mortgage demand.
Mortgage application volumes fell 10.5% on a seasonally adjusted basis for the week ending March 20, the Mortgage Bankers Association reported, with both purchases and refinances taking a hit. That comes on the heels of a 10.9% decrease the previous week.
