economy
Here's how mortgage rates changed in 2026 (and what could happen this June)
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TL;DR
- Mortgage rates saw a decline of about a full percentage point in 2025.
- The beginning of 2026 offered lower mortgage rates, with a 30-year term averaging 5.99% and a 15-year term at 5.38% in early January.
- Geopolitical events in Iran, surging oil prices, and growing inflation in March caused mortgage rates to increase.
- By the end of March, the average 30-year mortgage rate reached 6.37%.
- Rates briefly stabilized in April, returning to around 5.99% for a 30-year term.
- The Federal Reserve's decision to maintain interest rates in April, due to rising inflation, contributed to subsequent rate hikes.
- By late May, the average 30-year mortgage rate had risen to 6.50%, a nearly 9% increase since January.
- Despite the increases, current rates are still an improvement compared to 2023 and 2024 and historically average.
- Potential factors influencing June mortgage rates include the resolution of the conflict in Iran and the next Federal Reserve meeting.
- Monitoring the 10-year Treasury yield is also advised, as a drop could signal more affordable mortgage rates.