Mortgage rates ease to 7.3% as housing demand stabilizes

Mortgage rates have decreased to around 7.30% after peaking near 7.60%, which has temporarily stopped the decline in housing demand, HousingWire reported.

This change coincided with the 10-year Treasury yield falling below 5%, a key level that has influenced mortgage rates and housing market activity in 2026.

HousingWire noted that the worst-case scenario of mortgage rates reaching 8% or 9% is currently off the table, provided the 10-year yield holds near 5.35%.

Mortgage spreads, which measure the difference between mortgage rates and Treasury yields, have increased slightly to 2.23% but remain near cycle lows since the Federal Reserve began rate hikes in 2022.

Weekly pending home sales data showed a slight rise after weeks of decline, suggesting a short-term improvement in housing demand, though this data typically reflects sales activity with a 30-60 day delay.