The 10-year Treasury yield continued its wild movements based on alternating headlines on the Iran conflict, but as a result mortgage rates ended the week 16 basis points higher, Freddie Mac found.
The 30-year fixed rate mortgage reached 6.38% for March 26, up from
This is the highest the 30-year FRM has been since September.
But the 15-year FRM climbed closer to the year ago rate, rising 21 basis points to 5.75% from 5.54% for March 19 and 5.89% for March 27, 2025; this is only 14 basis points higher than the current rate.
It is also the first full week of bond and mortgage market activity since
How the housing market is impacted
"The housing market continues to show gradual improvements compared to a year ago amid recent rate volatility," Sam Khater, Freddie Mac chief economist, said in a press release. "Purchase and refinance applications are up year-over-year, and rates remain lower than last year."
This report came out the day after the Mortgage Bankers Association reported
"The 30-year fixed mortgage rate increasing more than 30 basis points since February has clearly softened borrower demand," MBA President and CEO Bob Broeksmit said in a Thursday morning statement. "Higher borrowing costs, affordability pressures, and economic uncertainty are likely prompting some prospective buyers to delay purchase decisions."
The MBA's Purchase Applications Payment Index released earlier Thursday found an increase in affordability in February but warned of a potential reversal in March.
The daily ups and downs affecting mortgage rates
Lender Price data on the National Mortgage News website had the 30-year fixed at 6.49% as of 11 a.m. on Thursday morning, 5 basis points higher than one week prior.
At the same time, the 10-year Treasury was at 4.37%, a gain of 4 basis points since Wednesday's close. On March 19, it closed at 4.28%, rising to 4.39% for its March 24 close.
"We're seeing more day-to-day ups and downs as the markets react to the mix of possibly good and definitely not-good news coming out of the Middle East, said Kate Wood, home and mortgage expert at NerdWallet, in a Thursday statement.
While March has had the highest average mortgage rates tracked by NerdWallet this year, the month-to-date average is still below all but one month in 2025.
"Higher prices at the grocery store and the gas pump will likely make many Americans hesitant to consider a major purchase like a home, but this spring's housing market may be relatively buyer friendly," Wood said.
Consumers' psyches shaken by the climb from under 6%
Rising rates, briefly below the psychological barrier of 6% which observers believe consumers are waiting for them to drop under, have shaken potential buyer confidence, said Kara Ng, Zillow Home Loans senior economist in a Wednesday evening statement.
"Here lies the conundrum for what it means for home buying and selling — affordability is still improved from a year ago, but about a third of the gains have reversed in recent weeks," Ng said.
"Home shoppers can still afford more than they could last year, but because of the hit to sentiment — both with anchoring on the buying power from a few weeks ago, and uncertainty about their financial prospects — some may choose to wait to transact."
It all depends on when the conflict and resulting inflation is resolved, Ng said.
"If the situation resolves quickly, it'll be early enough in the home shopping season for catch-up activity, and transactions might be higher than our modeled scenarios," Ng continued. "The longer it takes for the rate shock to resolve, the more likely transactions would be delayed to next season, offering a repeat of 2025."
Lenders turning to teaser rates
In a March 24 report from Eric Hagen of BTIG, he referenced a 6.3% 30-year FRM. He found, however, some online retail originators offering "teaser rates" of near 6%.
To get these rates, the applicant needs pristine credit and have a sub-70% loan-to-value ratio.
"We still think teasers can be an effective marketing tactic to help generate leads and gauge demand," Hagen said.
Lenders with more margin flexibility are offering buy-downs, "although we're skeptical on diminishing returns for lenders if rates stay elevated indefinitely, and we contemplate how sticky the relationship could actually end up being in a refi scenario," he said.
