US mortgage rates drop for second week to 6.3%, Freddie Mac says

[BOSTON] Mortgage rates in the US fell for a second week as the spring home sales season gets off to a sluggish start.

The average rate for 30-year, fixed loans was 6.3 per cent, down from 6.37 per cent last week, Freddie Mac reported on Thursday (Apr 16).

The housing market has been rattled by the war in Iran, which has fuelled inflation fears and pushed mortgage rates higher after they briefly dipped below 6 per cent in late February.

Sales of previously owned homes declined in March to the lowest level since June, the National Association of Realtors reported, and it downgraded its year-over-year volume projection for 2026 to 4 per cent from a previous estimate of 14 per cent.

“Prospects for April do not look much better, as timely indicators point to weakening housing demand following a recent jump in mortgage rates and a collapse in consumer confidence – both knock-on effects of the Iran conflict,” said Thomas Ryan, North America economist for Capital Economics. BLOOMBERG