Mortgage rates trend sideways

What happened: Mortgage rates have been volatile in recent weeks, driven by geopolitical tensions. On April 18, 2026, rates hit a five-week low of 6.15%, according to Zillow, as Middle East tensions eased. This followed a brief increase to 6.16% on April 14, and a month-long low of 6.14% on April 11, as war worries faded and the S&P 500 reached a new high.

Market impact: The mortgage industry and homebuyers are directly affected. Lower rates stimulate demand for mortgages, benefiting lenders like Zillow and other mortgage providers. Conversely, higher rates dampen demand, impacting both lenders and potential homebuyers. The broader economy also feels the ripple effects, as changes in mortgage rates influence consumer spending and housing market activity.

What to watch next: The evolution of Middle East tensions and any further geopolitical developments will continue to influence mortgage rates. Upcoming economic data releases, such as the Consumer Price Index (CPI) and Gross Domestic Product (GDP) reports, will provide insights into inflation trends and overall economic health, which could drive further rate changes. Additionally, the Federal Reserve's next policy meeting on May 3-4 could offer guidance on future interest rate movements.