NEW YORK, March 20, 2026, 16:42 (EDT)
Mortgage rates in the U.S. jumped back above 6.5% on Friday, according to Mortgage News Daily, which reported its average top-tier 30-year fixed rate climbing 10 basis points to 6.53%. That’s the highest reading since Sept. 3, 2025. Behind the move: Treasury yields spiked as the global bond rout worsened.
The jump comes right as the spring homebuying season kicks off—just as slight shifts in borrowing costs can knock out potential buyers. Total mortgage applications dropped 10.9% for the week ending March 13, the Mortgage Bankers Association reported. Refinance activity took a 19% hit, while the purchase index inched up only 1%. “Mortgage rates continued to move higher” alongside rising Treasury yields, noted Joel Kan, who serves as the group’s vice president and deputy chief economist. MBA Newslink
Weekly survey figures remain below what same-day lenders are quoting. Freddie Mac reported the average 30-year fixed at 6.22% for the week ended March 19, a bump from 6.11% the previous week and a drop from 6.67% this time last year. The Freddie Mac survey covers conventional purchase loans for borrowers putting 20% down and holding strong credit, whereas Mortgage News Daily pulls in real-time quotes for the most qualified borrowers only.
The Federal Reserve kept its policy rate unchanged at 3.5% to 3.75% on Wednesday, citing uncertainty in the U.S. outlook tied to developments in the Middle East. “The housing sector remained weak,” Powell said. The Fed’s H.15 release put the 10-year Treasury yield at 4.25% as of Thursday, up from 4.20% on Tuesday. Yields pushed higher again Friday, according to Reuters, as investors trimmed expectations for rate cuts and began pricing in a modest chance of a hike later this year. Federal Reserve
The change is hitting mortgage rates directly. Matthew Graham, chief operating officer at Mortgage News Daily, said fluctuating expectations around the Fed and other central banks are behind the shift. He added that a lasting drop back to the late-February lows isn’t on the cards right now.
Housing stocks took a beating alongside the bonds. The SPDR S&P Homebuilders ETF slipped roughly 2.5% by late afternoon. D.R. Horton dropped 3.5%, Lennar lost 3.4%, and Rocket Companies tumbled 6.8%.
Even so, there’s a balancing factor. Freddie Mac Chief Economist Sam Khater pointed out that buyers are entering a “more affordable spring homebuying season” compared to last year. And despite the latest uptick in rates, MBA data shows purchase applications remain up 12% from a year ago. Freddie Mac
Still, the short-term risk leans negative. Should oil prices settle down and Treasury yields drop, mortgage rates could slide fast. But if higher energy costs persist, borrowers may face steeper payments through April. Graham called a return to February’s rates “highly unlikely” in the near term, and Powell pointed out the market’s uncertainty around Middle East developments. Mortgage News Daily
