NEW YORK, March 28, 2026, 15:03 EDT
Mortgage rates in the U.S. squeezed higher by week’s end—Freddie Mac put its benchmark 30-year fixed at 6.38% while Mortgage News Daily’s read was a steeper 6.64% on Friday. The two surveys differ in method, but this week, both tracked another bump in borrowing costs.
The timing stings: just as the spring selling season kicked into gear, higher rates have pushed up monthly payments for buyers and made refinancing less attractive. Mortgage rates typically move with the 10-year U.S. Treasury yield, the key government benchmark for long-term borrowing. Lately, that yield’s been climbing, fueled by inflation worries tied to oil.
The 10-year Treasury yield clocked in at 4.428% as of Friday. Brent crude finished the session at $112.57 a barrel. Money markets have shifted: traders now put the odds of a Federal Reserve rate hike this year near 60%—a notable swing from late February, leaving lenders with limited options to loosen up.
The average 30-year fixed mortgage rate jumped 0.16 percentage point from last week, according to Freddie Mac, while the 15-year fixed notched up to 5.75% from 5.54%. “The housing market continues to show gradual improvements compared to a year ago,” said Sam Khater, chief economist at Freddie Mac, though he noted rates are still volatile. Freddie Mac
Earlier in the week, the Mortgage Bankers Association’s application index edged up, as the 30-year contract rate climbed to 6.43% for the week ended March 20. That’s an increase of 13 basis points, or 0.13 percentage point. But MBA figures showed a 10.5% drop in total applications. Refinancing activity slid 14.6%, while purchase applications slipped 5.4%. “Higher for longer oil prices” are propping up Treasury yields, said Joel Kan, the group’s deputy chief economist. Reuters
Lender pricing on Friday signaled lingering pressure in the market. Matthew Graham at Mortgage News Daily described it as a day of “mixed blessings”—rates climbed to another eight-month high, yet a late bond market rally pulled the average top-tier 30-year quote back to 6.64%, just under 6.7%. Mortgage News Daily
Market conditions remained tough. On Friday, the Dow slid into correction territory, with investors grappling with the economic aftershocks from the Middle East war. That conflict has been stirring the same inflation jitters pushing down stocks and bonds, now spilling over into mortgage rates as well.
There’s a catch with hoping for a quick relief: simply dialing back tensions won’t cut it, according to analysts MarketWatch spoke with. For mortgage rates to really drop, they point to a combination—steadier oil prices, easing inflation, and Treasury yields coming down. Otherwise, the increase seen this week might stick around well into April.
