The GSE's latest reading kept pressure on buyers and crushed refinance momentum
United States mortgage rates moved higher again this week, tightening conditions for borrowers heading into the heart of the spring selling season.
Freddie Mac reported its benchmark 30‑year fixed‑rate mortgage averaged 6.46% as of April 2. That's up from 6.38% a week earlier and 6.64% a year ago.
The 15‑year fixed rate also edged higher, averaging 5.77% compared with 5.75% last week and 5.82% at this time in 2025.
The latest move kept long‑term borrowing costs above 6% for the fifth straight week, reversing a brief dip below that level in late February that stirred hopes of more durable relief for rate‑sensitive borrowers.
“With spring homebuying season in full swing, aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes,” said Sam Khater, Freddie Mac’s chief economist.
Refi demand slid as rates climbed
Higher rates continued to weigh on application volume. The Mortgage Bankers Association reported that overall home loan applications fell by more than 10% for the latest week, driven by another steep drop in refinance activity.
“Refinance application volumes declined sharply again last week, dropping 17%, and are down more than 40% compared to last month,” said Mike Fratantoni, MBA’s chief economist.
“Seasonally adjusted purchase application volume also declined over the week, but only by 3%. The headwinds of higher rates are being offset somewhat by the buyer’s market in many parts of the country.”
Listings improved but uncertainty lingered
On the supply side, early spring data pointed to more options for house‑hunters.
“New listings jumped more than 20% from February to March, above the historical seasonal norm, and that's an encouraging sign of seller confidence,” said Jake Krimmel, senior economist at Realtor.com.
“March typically sets the table for the spring season, and last year we saw that momentum collapse almost immediately when economic uncertainty hit.”
Geopolitical tensions and rate expectations remain key drivers in the backdrop. The Iran conflict pushed oil prices and bond yields higher in recent weeks, helping to lift the 30‑year rate from just under 6% in late winter to current levels.
Rising oil prices and the Iran conflict push OECD US inflation forecasts to 4.2% in 2026. Fed policy uncertainty could keep long-term rates high, affecting mortgage demand even as buyers regain leverage in housing.https://t.co/sOFVXPoZXc
— Mortgage Professional America Magazine (@MPAMagazineUS) March 26, 2026
Analysts and lenders said the war‑related jump in energy costs complicated the Federal Reserve’s path and reintroduced volatility into a market that briefly stabilized around the mid‑5% range earlier this year.
“As far as its impact on the market, what people don’t realize is war is inflationary,” broker Shadi Nurani told Mortgage Professional America.
“You have spikes in oil prices… the likelihood of the Fed needing to print money goes through the roof.”
Global mortgage markets are on alert in early April as International Energy Agency (IEA) chief Fatih Birol warned that the oil supply shock would deepen, raising the risk of renewed inflation and delayed rate relief for borrowers.
Federal Reserve officials sounded more hawkish.
“I could see circumstances where we would need to raise rates if it was going a different way, and inflation was getting out of control,” said Chicago Fed president Austan Goolsbee.
On the other hand, Federal Reserve chair Jerome Powell used a wide‑ranging appearance at Harvard University to calm fears that the latest oil shock would trigger another round of interest rate hikes.
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