US Long-term Mortgage Rates Drop to 6.48%, Easing Pressure

WHO:

AP News - Freddie Mac, a mortgage buyer, reported the mortgage rates.

WHAT:

AP News - The average long-term U.S. mortgage rate fell to 6.48% from 6.53% the previous week.

AP News - The average mortgage rate remains below 6.85%, where it was a year ago.

AP News - The yield on the U.S. 10-year Treasury note was at 4.47% in midday trading, up from 4.45% a week ago.

AP News - Mortgage applications fell 2.5% last week for the third consecutive week, according to the Mortgage Bankers Association.

AP News - The average rate on 15-year fixed-rate mortgages fell to 5.79% from 5.87% the previous week.

AP News - The median price of U.S. homes listed for sale fell 2.4% last month from a year earlier.

WHERE:

AP News - The mortgage rates and economic conditions discussed pertain to the United States.

WHY:

AP News - The increase in mortgage rates has been attributed to the war with Iran, which has disrupted oil tanker passage and caused oil prices to rise, driving inflation fears.

AP News - Joel Berner, a senior economist at Realtor.com, stated, “This conflict is currently the main driver of still-high mortgage rates, as the oil shock ripples inflation fears throughout the global economy.”

HOW:

AP News - Mortgage rates are influenced by the Federal Reserve’s interest rate policy decisions and bond market investors’ expectations for the economy and inflation.

AP News - Mortgage rates generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

(UPDATED June 5, 2026 08:20 UTC)

Freddie Mac has reported that the average long-term U.S. mortgage rate has decreased to 6.48%, down from 6.53% the previous week, remaining below the 6.85% mark seen a year ago. Meanwhile, mortgage applications have dropped by 2.5% for the third consecutive week, and the average rate on 15-year fixed-rate mortgages has also fallen to 5.79%. This fluctuation in mortgage rates is largely attributed to the ongoing conflict with Iran, which has raised oil prices and heightened inflation fears, according to economist Joel Berner from Realtor.com.