Mortgage Rates Fall Amid Ukraine Conflict

Mortgage Weekly Update

Mortgage rates dipped lower this week, as concerns regarding Russia’s invasion of Ukraine mounted. According to Freddie Mac, the average rate on 30-year, fixed-rate mortgage loans fell to 3.76% — down from 3.89% last week, but up from just 3.02% a year ago.

“Geopolitical tensions caused U.S. Treasury yields to recede this week as investors moved to the safety of bonds, leading to a drop in mortgage rates,” said Sam Khater, Freddie Mac’s chief economist. “While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty. Consequently, rates are expected to stay low in the short-term but will likely increase in the coming months.”

Despite the decrease, mortgage applications fell for the week, according to the Mortgage Bankers Association. Purchase loans dropped 2% and are now 9% lower than a year ago. Refinances are down 56% over the year and now account for just 49.9% of all loan activity.

“Although there was an increase in government refinance applications, higher rates continue to push potential refinance borrowers out of the market,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Purchase activity remained weak, but the average loan size increased again, which indicates that home-price growth remains strong, and a greater share of the activity is occurring at the higher end of the market.” 

More in mortgage & housing news

  • CoreLogic released its latest Home Price Insights report this week, and according to its forecast, prices will rise just under 4% by January 2023. It’s a far cry from the 19% uptick seen between January 2021 and January 2022.
  • The average homeowner stays in their home 13.2 years now, according to new data from Redfin. That’s down from its peak of 13.5 years seen in 2020, but still up significantly from a decade ago, when the average homeownership tenure was just 10 years.
  • According to’s weekly report, median listing prices were up 14% annually this week. New listings increased 2%, while active inventory remained down 22% from a year prior. The average time on market was 13 days faster than last year.

This week in mortgage rates

Mortgage rates dropped on all three major loan products this week.

Here’s how they shook out:

Make sure to check back here next week for the latest mortgage interest rates and news.

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By Aly Yale / March 3rd, 2022 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.