Mortgage rates and refinance trends

What happened: Mortgage rates have reversed their upward trend, declining by a total of 16 basis points over the past week (April 10-13, 2026). The average 30-year fixed mortgage rate fell nine basis points on April 10, and an additional seven basis points by April 13, according to Freddie Mac and Zillow.

Market impact: This decline in mortgage rates benefits homebuyers and refinancers, making housing more affordable. It also positively impacts mortgage lenders like Zillow, who saw a significant drop in rates over the weekend. However, it may negatively affect mortgage-backed securities (MBS) investors, as lower rates typically lead to prepayments, reducing the cash flow from these securities.

What to watch next: On April 20, Freddie Mac will release its next mortgage rate survey. This will provide insight into whether the recent decline in rates is a trend or a short-term fluctuation. Additionally, the Federal Reserve's interest rate decision on May 3 will be crucial, as it could influence mortgage rates and the broader housing market.