Mortgage Interest Rates Today: Rates Dip to 6.23% Following Iran Ceasefire Extension

Mortgage rates eased this week following President Donald Trump's announcement of an indefinite ceasefire between the U.S. and Iran—a move that triggered a pullback in interest rates, providing a boost to the spring housing market.

The average rate on 30-year fixed home loans decreased to 6.23% for the week ending April 23, down 7 basis points from 6.30% the week before, according to Freddie Mac. For perspective, rates averaged 6.81% during the same period in 2025.

"The 30-year fixed-rate mortgage declined again this week to 6.23%," says Sam Khater, Freddie Mac's chief economist. "Rates currently stand at their lowest level in the last three spring homebuying seasons. This improvement, coupled with a pickup in purchase applications and refinance activity, as well as an increase in monthly pending home sales, underscores signs of improving momentum in the market."

Realtor.com® senior economist Joel Berner says a slight dip in the 10-year Treasury yield offered mortgage rates some breathing room to continue to retreat back toward where they were before the outbreak of the conflict in the Middle East.

However, despite this week's ceasefire extension to facilitate peace negotiations with Iran, geopolitical tensions remain high. Berner suggests it is unclear whether the severe market disruptions that have characterized the last two months will permanently subside.

"Oil prices remain elevated, injecting inflationary pressures into the economy at large, but interest rates have responded positively to the promise of peacemaking," says the economist.

He stresses that the domestic real estate market is in dire need of lower rates, with pending home sales being down in March on an annual basis, despite mortgage rates trending lower than a year ago.

"Rates were rising throughout March, which may have turned some buyers away, choosing instead to wait for the decline we have now seen in recent weeks," adds Berner. "Would-be homebuyers seem to be struggling with a crisis of confidence despite the fact that the market has turned in their favor."

March listing data indicated that the inventory of for-sale homes is expanding, prices are falling, and time on market is slowing. The Realtor.com economist says buyers should be able to take advantage of having more options at more affordable prices, and with less pressure than last year, but fewer are choosing to do so.

"Falling mortgage rates would provide a boost to the market, encouraging more new listings and more confident buyers for this spring season," he contends.

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to increase. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates to fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

How your credit score affects your mortgage

Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.

The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.

Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates, which can reduce monthly payments.

Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. Ultimately, they want to make sure you're able to pay back the loan.