WASHINGTON, March 26, 2026, 2:33 PM EDT
The average rate on a 30-year fixed mortgage in the U.S. hit 6.38% on Thursday, marking a new peak since early September and stretching its upswing to a fourth straight week. The increase comes as the spring home-buying season begins.
With borrowing costs on the rise, demand is taking a noticeable hit. The Mortgage Bankers Association reported Wednesday that applications declined 10.5% for the week ended March 20. Breaking it down, purchase loans dropped 5.4%, and refinancing activity slid 14.6%. The average contract rate for 30-year mortgages climbed 13 basis points to 6.43%. “The threat of higher for longer oil prices” has kept Treasury yields up, according to Joel Kan, the MBA’s vice president and deputy chief economist. Reuters
The average 15-year fixed mortgage rate climbed to 5.75%, up from 5.54% the previous week, according to Freddie Mac. “The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility,” said Sam Khater, the company’s chief economist. He noted that both purchase and refinance activity remain ahead of where they were a year earlier. Freddie Mac
Mortgage rates often follow moves in the 10-year Treasury yield. On Thursday, Reuters noted the yield added 4.2 basis points, reaching 4.37%. Brent crude also surged, climbing $4.77 to settle at $106.99 per barrel. “We’re in a market that’s being driven by oil prices,” said Peter Cardillo, chief market economist at Spartan Capital Securities. Reuters
Shares tied to the housing sector lagged in afternoon action. Rocket Companies dropped roughly 3.3% to $13.83. UWM Holdings shed about 1.8%, landing at $3.47, while Lennar gave up 1.2% to $91.07.
It’s been a sharp reversal. Back in late February, rates dipped as low as 5.98% when Trump told Fannie Mae and Freddie Mac to ramp up their buying of mortgage-backed securities—a move aimed at pulling down borrowing costs for homebuyers.
Freddie Mac’s headline average still sits under 6.65%—last year’s mark. But that figure only covers conventional home-purchase loans for top-credit borrowers putting down at least 20%. Most buyers shouldn’t count on landing that rate.
The next move might hinge more on oil prices and Treasuries than on the housing market itself. Reuters columnist Mike Dolan noted that the Iran oil shock has sent Treasury market volatility to levels not seen in almost a year, putting a squeeze on liquidity. Meanwhile, another Reuters piece pointed out that, despite ongoing diplomatic efforts, there’s still no tangible plan for peace talks. With those risks hanging over the market, mortgage rates could remain high into April.
