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US Mortgage Rate Leaps to 6.38%, Highest in Over Six Months

  • by- Grihik
  • Mar 28, 2026
The average long-term US mortgage rate has climbed to 6.38%, its highest level in more than six months, driving up borrowing costs during what is typically the busiest time of year for homebuyers.
US Mortgage Rate Leaps to 6.38%, Highest in Over Six Months

March 28: The average rate on a 30-year fixed mortgage rose to 6.38 per cent from 6.22 per cent last week, mortgage buyer Freddie Mac reported Thursday. This marks the largest one-week increase since April 2025 and the largest three-week increase since October 2024.

The last time the average rate was higher was September 4, when it stood at 6.5 per cent. One year ago, the rate averaged 6.65 per cent.

Why Rates Are Rising

Mortgage rates are influenced by several factors, including:

  • Federal Reserve interest rate policy decisions

  • Bond market investors' expectations for the economy and inflation

  • The trajectory of the 10-year Treasury yield, which lenders use as a guide

The 10-year Treasury yield was at 4.39 per cent at midday Thursday, up from around 4.26 per cent a week ago. Treasury yields have been climbing as higher oil prices—driven by the Iran war—increase expectations for higher inflation.

Impact on Homebuyers

When mortgage rates rise, they can add hundreds of dollars a month in costs for home shoppers, limiting what they can afford to buy.

Only four weeks ago, the average rate had dropped to just under 6 per cent for the first time since late 2022, but the trend has since reversed.

Refinancing Costs Also Rise

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose:

  • Current average: 5.75 per cent

  • Up from 5.54 per cent last week

  • One year ago: 5.89 per cent

Fed's Stance

At its meeting last week, the Federal Reserve decided to hold off on cutting interest rates. Chair Jerome Powell highlighted the increasingly uncertain outlook for the US economy and inflation following the Iran war, suggesting the Fed could stand pat for an extended period.

Housing Market Impact

The US housing market has been in a slump since 2022. Sales of previously occupied homes were essentially flat last year, stuck at a 30-year low. They have remained sluggish so far this year, declining in January and February versus a year earlier.

Joel Berner, senior economist at Realtor.com, said: "Rising mortgage rates are a major barrier to what should otherwise be a very favorable spring homebuying season."

Signs of Slowing Demand

Mortgage applications fell 10.5 per cent last week from the previous week, according to the Mortgage Bankers Association. Applications for both purchase and mortgage refinancing loans declined.

Bob Broeksmit, CEO of the Mortgage Bankers Association, stated: "Higher borrowing costs, affordability pressures and economic uncertainty are likely prompting some prospective buyers to delay purchase decisions."

Outlook

While the average rate remains slightly below year-ago levels, the recent surge adds to affordability challenges for potential homebuyers. With the Fed signaling patience on rate cuts and inflation concerns persisting, mortgage rates may remain elevated through the peak spring buying season.