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Mortgage interest rates have been on quite a ride since hovering near record lows in March 2020, during the height of the pandemic.
Since then, however, they’ve changed significantly, rising to their highest level since 2000 in the summer of 2023alongside the highest Federal funds rate in 22 years. But they slowly but noticeably declined in 2024, plunging to a multi-year low after the Fed cut rates in September 2024. And those drops continued toward the end of 2025 as the Fed issued another three rate cuts in the final four months of the year. By the start of 2026, mortgage interest rates were, on average, around a full percentage point lower than they had been at the start of 2026 for 30-year terms. By February, there were multiple ways in which qualified borrowers could secure rates closer to 5%.
But while February may only have been a few weeks ago, market conditions since then have changed noticeably, and mortgage interest rates have suffered the consequences. This could be discouraging for homebuyers and owners hoping to refinance their current loan, or it could be the motivation they need. By first understanding why mortgage rates have risen again, borrowers can better determine their next move and position themselves for success, even if rates are now less than ideal.
So, why did mortgage rates go up again? That’s what we’ll detail below.
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Why did mortgage rates go up again?
Mortgage interest rates are driven by a complex combination of factorssome of which have been more prevalent than others so far this March. Here are three primary reasons why mortgage rates have risen this month, in particular:
Economic news has been mixed. On March 6, an unemployment report from the Bureau of Labor Statistics showed an increase in the unemployment rate and a loss of 92,000 jobs for February. Normally, this sort of news could be the motivation the Federal Reserve needs to stabilize the job market via interest rate cuts. But less than a week later, the latest inflation report showed the rate stagnating at 2.4%, unchanged from the month prior and still above the Federal Reserve’s target 2% goal. That then reduced the chances of a Fed rate cut. Combined, these factors injected uncertainty into the market, and that resulted in lenders protecting themselves, perhaps preemptively, by increasing mortgage interest rate offers to borrowers.
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Geopolitical tensions have risen. Consequences from geopolitical tensions and conflicts abroad aren’t limited to just overseas. They have impacts on the markets in the United States and other locations as lenders wait to see conditions improve. Until they do, or until tensions subside, lenders will keep rates a bit elevated to offset any market uncertainty still to come. And that’s what’s happened with interest rates this month, with mortgage interest rates impacted, perhaps most noticeably, with the average 30-year interest rate up by around half a percentage point in just a few weeks.
The Federal Reserve has paused rate cuts. Against this backdrop, it wasn’t a surprise to see the Federal Reserve maintain its interest rate cutting pause when it met last week. But comments made by officials post-meeting not only caused the market to shake, but it left borrowers wondering about the reality of any rate cut at all in 2026. Currently, there’s more than a 70% chance the Fed will keep rates where they are through December, according to the CME Group’s FedWatch tool. And the chances of a rate cut only marginally improve for the final month of the year. This pause – and uncertainty about rate cuts in the remaining months of the year – have also caused mortgage rates to rise.
What borrowers should consider doing now
For homebuyers and owners hoping to refinance who can’t afford today’s new mortgage rates, or simply prefer to secure a lower one, there’s not much they can do except wait (and work on their credit to make themselves a more attractive borrower for when rates do improve). Others, however, who are still committed to buying or refinancing may want to seriously consider the advantages a mortgage interest rate lock now offers.
By locking in one of today’s rates, borrowers can protect themselves from any additional market changes that cause rates to tick up again. And, if rates somehow decline in the short term, they can look to float their rate down to the new, lower one before closing. And, if rates decline in the long term, they can look to refinance their loan at that point. In the interim, however, they’ll be able to budget with certainty and have confidence knowing that any adverse market conditions still to come won’t impact them in the way they would have, minus a rate lock.
The bottom line
Mortgage interest rates rose this month thanks to all of the aforementioned factors, as well as some others, like the 10-year Treasury yield movement, that borrowers should also monitor while looking for affordable rates. That said, a mortgage rate lock can still be worth pursuing now, especially considering the uncertainty that still lies ahead. And don’t forget about mortgage pointstoo, which may be particularly advantageous for borrowers right now, particularly if the addition can result in a materially lower rate. Consider speaking with a lender directly, also, who can answer your questions and better help you navigate today’s mortgage interest rate climate.