FX.co ★ US Mortgage Rates Dip Amid Middle East Uncertainty

The average US 30-year fixed mortgage rate for conforming loans of $806,500 or less declined to 6.51% for the week ending April 3, 2026, from a seven-month high of 6.57% the previous week, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey released Wednesday. This is the first decrease in more than a month and reflects a drop of more than 10 basis points in Treasury yields, as investors grew increasingly concerned about the economic fallout from the Middle East conflict. The war has unsettled global markets, stoked fears of stagflation, and lowered expectations that the Federal Reserve will raise interest rates this year to counter energy-driven inflation. Despite the modest rate relief, mortgage demand continued to soften: total applications slipped 0.8%, marking a fourth straight weekly decline following earlier double-digit drops. Refinancing activity drove the pullback, falling 2.8%, while purchase applications edged up 1.1%.