Mortgage rates ticked down Thursday after five consecutive weeks of gains as a tentative two-week ceasefire between the U.S. and Iran went into effect, driving down oil prices and offering markets a welcome reprieve.
The average rate on 30-year fixed home loans fell to 6.37% for the week ending April 9, down 9 basis points from 6.46% the week before, which marked a seven-month high, according to Freddie Mac. For perspective, rates averaged 6.62% during the same period in 2025.
"Mortgage rates ticked down this week, averaging 6.37%," said Sam Khater, Freddie Mac's chief economist. "The decrease in rates represents a positive development for prospective homebuyers and could spark a more favorable spring homebuying season than last year."
President Donald Trump announced Tuesday a ceasefire deal, just hours after setting an 8 p.m. deadline for Iran to reopen the Strait of Hormuz—the strategically important waterway through which 20% of the world’s crude oil passes—and threatening that "an entire civilization will die tonight" if Teheran refused to comply.
On Wednesday, Iran claimed shipping through the strait was halted in retaliation for Israel’s large-scale attack on Lebanon. It comes as peace talks are scheduled to begin in Pakistan this weekend.
Realtor.com® economist Jiayi Xu says that while the fragile truce in the conflict has resulted in the 10-year Treasury yield, which underlies mortgage rates, starting to ease, she warns that any relief may prove short-lived.
"Until a more permanent resolution emerges, the fog of uncertainty is unlikely to fully lift from the housing market," she says.
Mortgage rates are one of the most powerful forces shaping whether the 2026 spring buying season thrives or stalls.
While buyers celebrated rates dipping below 6% earlier this year—a milestone not seen in years—that window of opportunity proved frustratingly brief, as geopolitical tensions in the Middle East quickly reversed the progress as the war roiled financial markets.
"What took almost six months of gradual decline to bring rates from 6.5% down below 6% was unwound in just five weeks—a stark reminder of just how fragile affordability gains are when mortgage rate volatility enters the picture," says Xu.
For buyers who had finally seen a reason to act, this disruption could not have come at a worse time.
"Mortgage rates don't just affect monthly payments," stresses Xu. "They shape buyer confidence, seller motivation, and the entire rhythm of the market, making every uptick a potential reason for hesitation during the season that matters most."
The Realtor.com economist says that if the U.S.-Iran conflict moves toward resolution, rates could resume their downward path as oil prices stabilize and inflation pressures ease—but that timeline remains uncertain.
In a recent post on Truth Social, Trump said that if an agreement with Iran is not reached, "which is highly unlikely," then the "'Shootin' Starts,' bigger, and better, and stronger than anyone has ever seen before."
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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