The average 30-year fixed mortgage rate fell to 6.48% for the week ending June 4, retreating from its highest level in nine months as global energy prices pulled back, according to Freddie Mac data released Thursday. The benchmark rate dropped 5 basis points from 6.53% the previous week, offering relief to prospective homebuyers navigating a persistently expensive borrowing environment.
The decline came as an uneasy ceasefire between the U.S. and Iran cooled global energy markets, easing pressure on bond yields that directly influence mortgage rates. “This conflict is currently the main driver of still-high mortgage rates, as the oil shock ripples inflation fears throughout the global economy,” said Joel Berner, senior economist at Realtor.com. “We expect to see further mortgage rate relief once the Strait of Hormuz is opened for good.”
Mortgage rates track the 10-year Treasury yield, which climbed to 4.47% in midday trading Thursday, up from 4.45% a week earlier. The yield had been just 3.97% in late February before the Iran conflict began, illustrating how geopolitical tension has kept long-term borrowing costs elevated throughout 2026.
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Shorter-term borrowing also eased this week. The average 15-year fixed rate fell to 5.79% from 5.87%, benefiting homeowners refinancing existing mortgages. Both rates remain below where they stood a year ago—the 30-year rate was 6.85% at this time in 2025.
Mortgage applications fell 2.5% last week for the third consecutive week, signaling that elevated rates continue to dampen homebuyer activity despite other favorable market conditions for buyers. Home listing prices have fallen 2.4% from a year earlier, the steepest decline since 2017, and inventory remains the highest since 2019. Still, uncertainty over how much higher rates may climb as the Middle East situation evolves has kept many would-be homebuyers on the sidelines.
Sources
- Orange County Register (AP) — Freddie Mac mortgage rate data for week ending June 4, 2026; 30-year rate at 6.48%, down from 6.53%; retreat from 9-month high; 15-year rate at 5.79%.
- Realtor.com — Joel Berner commentary on mortgage rate drivers, ceasefire impact on energy prices, Treasury yields, and housing market conditions; median listing price decline and inventory data.
