Mortgage rates retreated again Thursday as the uneasy ceasefire between the U.S. and Iran continued, tempering oil prices and offering global markets a measure of stability..
The average rate on 30-year fixed home loans decreased to 6.30% for the week ending April 16, down 7 basis points from 6.37% the week before, according to Freddie Mac. For perspective, rates averaged 6.83% during the same period in 2025.
"Mortgage rates declined this week to a four-week low of 6.30%," said Sam Khater, Freddie Mac's chief economist. "Compared to one year ago when rates were at 6.83%, this is a meaningful improvement for homebuyers during what is typically the busy spring homebuying season."
The 10-year Treasury yield has eased from last week, with the relief carrying through to mortgage rates.
However, Realtor.com® senior economist Anthony Smith cautions that the durability of any rate decline hinges on whether the ceasefire in the Middle East persists and evolves into a more lasting resolution.
"Until there is greater clarity on the geopolitical front, mortgage rate volatility is likely to remain elevated, and any improvement could prove temporary," he says.
On Thursday, the U.S. military maintained its blockade of Iranian ports, even as the White House floated a second round of peace talks with Tehran following the collapse of initial negotiations in Pakistan.
Smith says the U.S. housing market continues to show signs of strain under the weight of elevated rates and broader economic uncertainty. March existing home sales fell 3.6% from February to a seasonally adjusted annual rate of 3.98 million, with sales declining month-over-month in all four regions.
Despite the softening activity at the national level, trends within regions can vary widely, as the Realtor.com Market Clock illustrates, with some metros firmly favoring sellers while others shifting into buyer-friendly territory.
"For sellers considering a move, the timing is favorable," says the economist. "This week falls within what Realtor.com has identified as the best time to sell a home in 2026, with listings during the week of April 12-18 historically receiving 16.7% more views than the average week and selling roughly nine days faster."
Sellers who list now can also get ahead of the late-spring surge in new listings that typically intensifies competition.
"For buyers, any ceasefire-driven dip in mortgage rates represents a potential window to lock in slightly more favorable financing, though affordability challenges will persist until rates move meaningfully lower and inventory continues to build," concludes Smith.
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.
Snejana Farberov is a reporter at Realtor.com covering the U.S. housing market and the latest domestic real estate trends. She has worked as a general assignment journalist in New York City and Long Island for 16 years, writing for New York Post, Daily Mail, and News 12. Snejana earned bachelor's degrees in journalism and Italian from St. John's University, followed by a master’s degree from Columbia University School of Journalism.
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