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The average 30-year fixed mortgage rate rose to 6.22%, up from 6.11% last week
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Rates are higher for the third straight week but still below last year’s 6.67%
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Economic uncertainty, rising Treasury yields and inflation fears are pushing borrowing costs higher
In recent weeks, mortgage rates have reversed their steady decline and are moving higher again. This week, the average rate hits its highest level in more than three months.
Freddie Mac reports the average rate on a 30-year fixed mortgage increased to 6.22% this week, up from 6.11% a week earlier. A year ago, the rate averaged 6.67%. The 15-year fixed-rate mortgage also ticked up to 5.54%, from 5.50% the previous week.
“The 30-year fixed-rate mortgage edged up this week to 6.22% but remains nearly half a percentage point lower than the same time last year,” said Sam Khater, Freddie Mac’s chief economist, noting that buyers may still see improved affordability compared to 2025.
Why mortgage rates are rising
While the weekly increase appears modest, broader economic forces are driving rates higher — and could keep them elevated in the near term.
1. Rising Treasury yields
Mortgage rates closely track the yield on the 10-year Treasury note, which has climbed in recent weeks. When bond yields rise, lenders increase mortgage rates to maintain returns.
2. Inflation concerns
Markets are increasingly worried that inflation could reaccelerate, particularly as energy prices rise. Higher expected inflation typically leads to higher borrowing costs across the economy.
3. Geopolitical tensions
The ongoing conflict in the Middle East — particularly involving Iran — has injected volatility into financial markets and pushed oil prices higher, amplifying inflation fears and sending mortgage rates upward.
4. Federal Reserve outlook
Although the Federal Reserve does not directly set mortgage rates, its policies influence the broader interest-rate environment. Expectations that the Fed may delay rate cuts have also contributed to upward pressure.
The recent rise in rates comes at a critical time. Spring is typically the busiest homebuying season, and earlier declines in rates had begun to draw buyers back into the market.
There are already mixed signals. Purchase applications and pending home sales have shown some improvement, according to Freddie Mac, but higher rates could slow that momentum.
At the same time, affordability remains a challenge. Even with rates below last year’s levels, elevated home prices and borrowing costs continue to sideline many buyers.
Economists warn that continued volatility — especially tied to global events — could make both buyers and sellers hesitant, limiting activity despite underlying demand.
Outlook
Most forecasts still call for mortgage rates to hover in the mid-6% range in 2026, with the possibility of gradual declines later in the year if inflation eases.
For now, however, the trajectory depends heavily on inflation trends, financial markets and geopolitical developments — factors largely outside the housing market itself.
That leaves prospective buyers navigating a familiar reality: a market where rates can shift quickly, and timing remains uncertain.
