WASHINGTON, March 27, 2026, 04:53 EDT
Mortgage rates in the U.S. climbed to their highest level in six months this week, sending borrowing costs higher at a moment when the spring home-selling season is ramping up. According to Freddie Mac, the average rate for a 30-year fixed mortgage increased to 6.38%, compared with 6.22% the previous week.
This shift stands out—rates had only just slipped under 6% at the end of last month, briefly sparking hopes that cheaper loans might tempt more buyers and folks looking to refinance. On Feb. 26, the average rate was sitting at 5.98%, according to Reuters. But then, a surge in oil prices tied to the Middle East war drove Treasury yields higher; mortgage rates tend to follow the 10-year U.S. Treasury yield.
Fresh demand numbers are looking stressed. The Mortgage Bankers Association reported its 30-year fixed mortgage contract rate climbed 13 basis points to 6.43% for the week ending March 20. Mortgage applications dropped 10.5% in that stretch. Joel Kan, who serves as vice president and deputy chief economist for the group, pointed to “higher for longer oil prices” as a factor keeping Treasury yields up. MBA Newslink
The takeaway for mortgage brokers and direct lenders: slimmer refi pipelines, fiercer jockeying for purchase loans. “Gradual improvements compared to a year ago,” Freddie Mac chief economist Sam Khater noted, but fresh volatility is now chipping away at that progress. Freddie Mac
Freddie Mac’s benchmark takes a tighter approach than the MBA’s wider applications survey. It focuses on conventional purchase loans—within federal size caps, 20% down, solid credit. Still, the agency noted rates stayed under last year’s 6.65% average.
The MBA’s separate index sheds some light on what got buyers moving again ahead of March’s surge. According to the Purchase Applications Payment Index, the median payment purchase applicants applied for in February slipped to $2,061, down from $2,070 in January.
But that breather might not last long. Edward Seiler, associate vice president for housing economics at the MBA, warned that this month’s Middle East turmoil “could impact overall affordability in the months ahead.” American Banker
The recent increase erodes the Trump administration’s move from January, when officials tried to lower home-loan costs by pushing Freddie Mac and Fannie Mae to expand their purchases of mortgage-backed securities. Back in late February, after rates dropped under 6% for the first time, economists told Reuters they weren’t convinced that lower mortgage costs, by themselves, would spark a housing rebound without a bigger inventory of homes for sale.
One factor could disrupt the relentless climb in rates: Oil eased off on Friday after Trump hit pause on attacks targeting Iranian energy facilities. Brent, though, hovered close to $108 per barrel. Investors aren’t relaxing, with many still positioned for a drawn-out conflict—setting the stage for inflation, and mortgage rates, to stay stubbornly high into spring.
