As of April 2026, mortgage interest rates have been unpredictable, influenced by various factors including geopolitical events. Earlier in the year, rates seemed to stabilize, with the average 30-year mortgage rate at 5.87% in February. However, the conflict with Iran led to inflation concerns, pushing rates up to 6.37% by March. Recently, rates have decreased to around 6% due to calming tensions and a drop in the 10-year Treasury yield, which heavily influences mortgage rates. Experts predict that rates may remain steady in May, hovering in the low-to-mid 6% range, unless unexpected changes in inflation or Middle East peace talks occur. With no Federal Reserve meeting scheduled for May, current rates already reflect the latest Fed decisions. The situation highlights the fragile nature of mortgage affordability, as rates can quickly change with shifts in risk sentiment.
QUESTION: How might the unpredictability of mortgage rates impact young people planning to buy their first home in the future?
What’s the mortgage interest rate forecast for May 2026?
