Mortgage rates hit 2026 high as peak homebuying season begins
Concerns about inflation and the wider U.S. economy are driving up mortgage rates as the housing market embarks on what is typically its busiest time of year.
Key points:
- The 30-year fixed-rate mortgage rose to 6.22% this week, according to Freddie Mac. But daily surveys show more volatility, with Mortgage News Daily pegging the March 19 rate at 6.43%.
- Rate fluctuations and persisting economic uncertainty “could once again sideline both buyers and sellers” as the spring homebuying season begins, warned Realtor.com Senior Economist Anthony Smith.
- Though rates are climbing, other data suggests the industry may be entering its most buyer-friendly housing market of the past few years.
Homebuyers are once again contending with rising mortgage rates as the spring homebuying season kicks off.
With surging oil prices stoking inflation fears, the 30-year fixed-rate mortgage has jumped in recent days after dropping below 6% for the first time in over three years, according to Mortgage News Daily. On the morning of March 19, the 30-year rate was sitting at 6.43% — up from 6.36% at the start of the week.
Freddie Mac, which uses a different set of metrics to gauge rates, pegged the weekly average 30-year rate at 6.22% on March 19 — the highest level so far this year for Freddie Mac's survey.
Mortgage rates have jumped in the weeks leading up to the spring homebuying season every year since 2022. It's becoming a tradition that the real estate industry doesn't want to see persist.
The rate volatility and economic uncertainty seen in the first few months of 2026 are reminiscent of what consumers experienced last year, when the introduction of new tariffs brought about a wave of anxiety, noted Anthony Smith, senior economist at Realtor.com.
"Elevated uncertainty could once again sideline both buyers and sellers, echoing the hesitant market conditions seen last year," Smith said.
Homes linger on market
The hesitation among buyers is equating to more days on market for listings. Redfin estimates that the typical home spent 66 days on the market in February — up from 58 days at the same time last year and the slowest February pace in a decade.
"House hunters have been waiting for mortgage rates to drop, and they finally fell below 6% a couple of weeks ago, which was great," said Redfin Senior Economist Asad Khan."But then rates bounced back. The war in Iran, skyrocketing gas prices and other economic jitters are making homebuyers nervous."
Even so, the report also found that the typical homebuyer paid 1.8% less than the list price in February — an indication that negotiations are occurring, and a positive sign for prospective buyers.
Mortgage applications stall
Rising rates and the war in Iran appear to have chilled mortgage applications. Overall activity dropped 10.9% for the week ending March 13, according to the Mortgage Bankers Association (MBA).
Much of the decrease came in refinance applications, which fell 19% from one week earlier. But the seasonally adjusted Purchase Index actually ticked up 1%, which MBA Vice President and Deputy Chief Economist Joel Kan attributed to growth in FHA and VA loan segments.
New signs of a buyer-friendly market
Despite the recent uptick in mortgage rates, much of the country is on the cusp of the most buyer-friendly spring in years, according to Mark Fleming, chief economist at First American.
The financial services company's Home Price Index was down 0.2% in February compared to the year before, marking the first year-over-year decline since 2012. Fleming expects the index's overall trend to be basically flat, with some anticipated firming in the spring as activity increases.
"Importantly, near-zero national price growth combined with rising household incomes and an increase in homes for sale continues to improve affordability," Fleming said. "As always, local supply and demand conditions will determine how prices respond during the peak buying months."
Another positive sign? Touring activity is up 23% since the beginning of the year, according to Redfin data. "Homes for sale" Google searches have also reached the highest level since last summer, and improving spring weather may also be to thank for the small increase in new listings, according to Redfin's March 19 report.
"With so many more home sellers than buyers in the market, buyers have a good chance of finding their perfect home in their perfect neighborhood," said Barb Cooper, a Redfin Premier agent in Austin, Texas.