What happened to mortgage rates this week?
The Freddie Mac 30-year mortgage rate dropped 1 basis point this week to 6.36% despite inflation concerns taking center stage after the most recent CPI readout. Mortgage rates stabilized this week even as the yield on the 10-year Treasury note picked up on expectations that price pressures would continue to creep from crude oil into other sectors of the economy.
Mortgage rates were able to relax ever so slightly this week as oil prices have steadied and, more importantly, as demand for mortgage-backed securities increased. The upward pressure on mortgage rates from the broader debt market (as evidenced by the increased yield on the 10-year Treasury) was offset this week by a modest increase in the prices of mortgage-backed securities, which pushed mortgage rates down.
Â
Â
What does this mean for the housing market?
Though the mortgage rate relief is slight, this week’s readout is a sign of some much-wanted stability. The Freddie Mac rate has been moving in large swings up and down since the onset of the war in Iran, and the whiplash’s effect on buyers has been to keep them sidelined. This is part of the reason why home sales have been stagnant so far in 2026, notching only marginal improvements over the 30-year low of the 2025 housing market. Uncertainty has ruled the market for months, and while buyers certainly wish rates were back in the 5% territory we saw earlier this year, they are still significantly lower than they were last year at this time. The spring homebuying season should be a great opportunity for buyers, with inventory up and prices down, so it remains to be seen whether they will capitalize on this period of steady rates.
