The average U.S. long-term mortgage rate ticks up to 6%, ending a three-week slide

The average long-term U.S. mortgage rate fell to its lowest level in three-and-a-half years this week, as bond yields rose after oil prices rose due to the war with Iran.

The benchmark 30-year fixed-rate mortgage rate ticked to 6% last week from 5.98%, mortgage broker Freddie Mac said Thursday. A year ago, the rate averaged 6.63%.

The modest increase ends a three-week slide in the average price, which has reached about 6% this year. Last week’s average rate marked the first time it fell below 6% going back to September 2022.

Meanwhile, borrowing costs for 15-year fixed-rate mortgages, which are popular with homeowners refinancing their home loans, fell this week. This average rate fell to 5.43% from 5.44% last week. A year ago, it was at 5.79%, Freddie Mac said.

Mortgage rates are affected by many factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation. They typically track the 10-year Treasury yield, which lenders use as a guide for pricing home loans.

The 10-year Treasury yield was at 4.14% Thursday afternoon, up from about 4% a week ago.

Treasury yields have risen recently as rising oil prices put more upward pressure on inflation, which could keep the Federal Reserve from cutting interest rates.

The central bank does not set mortgage rates, but decisions to raise or lower short-term rates are closely watched by bond investors and can ultimately affect the 10-year Treasury yield, which affects mortgage rates.

“For prices to continue their descent into 2026, we will need clear signals in the coming months that this conflict is not raising prices for consumers at home,” said Joel Brunner, senior economist at Realtor.com. “Given the big jump in oil prices this week and the freight costs that go with it, this positive news on inflation may be difficult.”

Mortgage rates have been low for months, helping lead to a rally in home sales in the final four months of 2025, although the housing market will not recover enough from its slump until 2022, when mortgage rates begin to rise from pandemic-era lows.

US pre-occupied home sales remained at a 30-year low last year. And this year’s buyer-friendly mortgage rates weren’t enough to boost home sales last month.

A sharp rise in home prices, especially in the early years of this decade, and a prolonged national housing shortage exacerbated by years of below-average home construction have driven many interested homeowners out of the market.

This has many homebuyers keeping an eye on mortgage rates, which can increase homebuyers’ purchasing power when they fall, but also reduce how much homebuyers can afford when rates rise.

Depending on the borrower’s income, credit and other factors, they may qualify for a 30-year mortgage rate that is below or above the current average.

Still, with the average rate for a 30-year mortgage hovering below what it was last year, it creates a favorable backdrop for potential home buyers who can shop at current rates as the spring home buying season ramps up.

Home buyers this spring are also poised to take advantage of a wider selection of homes for sale than a year ago, at least nationally, and lower list prices in many metro areas.

The recent downward movement in mortgage rates has created demand among home buyers and homeowners who want to refinance their existing loan at a lower rate.

Mortgage applications rose 11% last week from the previous week as mortgage rates remained soft, according to the Mortgage Bankers Association.

Home loan applications were up nearly 10% from the same week last year, while home loan refinancing applications accelerated to their strongest pace since 2022. They accounted for nearly 60% of all home loan applications last week.