In short: Mortgage rates remained relatively stable this week, with the 30-year fixed-rate in the mid-6% range. While a slight dip in Treasury yields provided minor relief, persistent inflation concerns and geopolitical tensions continue to keep rates from falling back toward the 6% threshold.

Mortgage rates hold steady 

Mortgage rates were little changed over the week, even amid a flurry of headlines on geopolitical conflicts and the Fed transition. For shoppers, it means that buying power is still better than a year ago, but down from a month ago. 

What’s the impact on housing? 

Home shoppers have been navigating uncertainty in some form since the start of the pandemic six years ago, and the March pending sales figures suggest they have continued to adapt through the latest round of challenges.

One potential explanation is timing. Some buyers presumably began their search and secured pre-approval during the brief window of sub-6% rates in late February, and may be committed to finding their home even after the subsequent mortgage rate spike eroded a third of this year’s affordability gains. The question is how long the resilience can hold if mortgage rates stay in the mid-6% range. 

Weekly data can be volatile but pending sales in the first couple weeks of April appear softer than in March. It also underscores how sensitive today’s housing market is to changes in mortgage rates, and how quickly momentum can build or fade depending on where rates head next.