Why did mortgage rates go up again?
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 2023, alongside 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.
Start by seeing what your current mortgage rate offers are here.
Why did mortgage rates go up again?
Mortgage interest rates are driven by a complex combination of factors, some 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.