Mortgage rates ease again, but remain higher than this time last year
The average long-term U.S. mortgage rate eased for the second week in a…
UCLA basketball star Angela Dugalic and South Carolina's Joyce Edwards were locked in a competitive matchup during the women's National Championship Final Four NCAA college basketball game in Phoenix on April 5, 2026. Meanwhile, the average long-term U.S. mortgage rate experienced a second consecutive week of easing, though it remains significantly higher than rates from the same time last year.
The benchmark 30-year fixed rate mortgage rate dropped to 6.65% from 6.67% the previous week, according to Freddie Mac. One year ago, the average rate stood at 6.58%. Borrowing costs on 15-year fixed-rate mortgages, frequently sought by homeowners refinancing, also decreased this week, falling to 5.95% from 5.96% a week prior. However, a year ago, the rate was 5.69%.
Although the recent rate reduction is welcome news, mortgage rates have been predominantly climbing this year, thereby limiting potential homebuyers' ability to purchase homes. Elevated mortgage rates can prompt prospective buyers to delay the home-buying process, which has contributed to sluggish U.S. home sales this year. Mortgage rates are impacted by various factors, including inflation, decisions made by the Federal Reserve's policy rate, and market expectations for the economy.
They typically align with the 10-year Treasury yield, which serves as a benchmark for loan pricing. Both mortgage rates and bond market yields have been mostly rising this year due to tensions stemming from the U.S. conflict with Iran. This conflict has generated concerns about potential inflation fueled by soaring crude oil prices.
Despite recent easing in oil prices, long-term bond yields remain elevated compared to pre-conflict levels, contributing to the upward trend in mortgage rates. In response to mounting bond yields, the U.S. Treasury Department announced on Wednesday that it would double the quantity of U.S. government bonds it intends to repurchase over the coming months.
This action helped to alleviate some of the upward pressure on yields, which had peaked at their highest level in over a year.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
