Buying a home? Mortgage rates aren't your biggest problem

Current mortgage rates are essentially flat. Fixed rates ticked down by just one basis point this week, according to Freddie Mac, putting the 30-year fixed mortgage rate at 6.36% and the 15-year rate at 5.71%.

Recent Zillow data found that April was the first month in 2026 that there were more home listings than home sales. This surprised some experts because April is usually one of the most popular months to buy a home.

The Zillow report listed high mortgage rates as one reason homebuyers waited on the sidelines last month and said that the housing market could rebound if rates dropped.

Which, clearly, they did not. At least not significantly.

I don't deny that mortgage rates are a crucial factor in home affordability. However, as a long-time real estate reporter, I've also learned that they aren't the only factor. Recent data and insights from experts seem to agree with me.

John Hummel, head of retail home production at U.S. Bank, says that even though interest rates are high, they're lower than this time last year, and homebuyers are finally starting to take action.

In an interview with TheStreet, Hummel said, "We're continuing to see that demand for homeownership doesn't disappear when rates increase, consumers are looking beyond just rates."

High mortgage rates can't stop homebuyers

U.S. Bank shared a recent survey with me, which it conducted in partnership with business intelligence company Morning Consult. In the report, only 17% of surveyed participants said that high mortgage rates were the main factor stopping them from buying a house.

The two most prominent barriers to affording a home were high housing prices (31%) and the cost of a down payment (26%).

Hummel said this data is "reinforcing that rates are just one piece of the decision-making process when it comes to home buying."

Related: Redfin unveils huge shift in home sales, housing market

After reviewing data from multiple sources, I understand why high home prices and down payments are larger barriers than high mortgage rates.

Home price growth was actually slowing for about a year. But a Redfin report revealed that year-over-year home sale prices increased by 2.4% in April. This was the largest gain in 13 months.

And if homes are becoming more expensive, it stands to reason that minimum dollar amount needed for a down payment is also rising.

Meanwhile, mortgage rates may be higher than we'd like, but they're still lower than this time last year.

With high mortgage rates, is it still a good time to buy a house?

Yes, it's still a relatively good time to buy a house overall. Of course, the answer to this question ultimately depends on your personal financial situation and local housing market, but overall, homebuyers are seeing some opportunities right now.

As I mentioned, fixed mortgage rates are down since May 2025. According to Freddie Mac, the annual 30-year fixed rate has decreased by 45 basis points, and the 15-year rate has dropped by 21 basis points.

Interest rates might still be too high for many homeowners to benefit from refinancing. But a lot of people have starting getting into the home-buying season spirit and applying for mortgage loans.

More on mortgages and mortgage rates:

• The hidden reason mortgage rates won't drop yet
• Zillow reveals why spring housing market is turning upside down
• Berkshire Hathaway sends urgent message to home sellers

Data from the Mortgage Bankers Association (MBA) shows that during the week of May 8, applications for mortgages to buy a new home rose by 4%. This followed two consecutive weeks of application decreases.

U.S. Bank has also experienced an uptick in new mortgage applications.

"We have seen stronger purchase applications with many buyers who have been sitting on the sidelines taking advantage of an uptick in inventory with the spring selling season upon us," Hummel told TheStreet.

Key takeaways on mortgage rates in 2026

So, mortgage rates have been inching up and down for months, and they barely moved this week. What should potential homebuyers expect for the rest of the year?

• Mortgage rates will probably significantly decrease only once the Iran war ends. At the time of writing, there is no known plan for peace between the U.S. and Iran.
• The Federal Reserve might not lower the federal funds rate this year. If the central bank keeps its rate unchanged, mortgage rates will likely be relatively steady. If the Fed hikes its rate, home loan rates could increase in response.
• We can keep an eye on jobs reports and inflation data to get a sense of how the Fed and 10-year Treasury yield will move next.
• "We've seen rates stay relatively flat the past several weeks," Hummel told TheStreet, "and while we did see a jump in inflation in this week's report, I suspect the market overall lacks significant new data and continues to take a wait and see approach." So, if inflation makes more drastic moves over the next couple of months, mortgage rates may shift up or down.

Related: Housing market shift offers big opportunities in May 2026

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This story was originally published May 14, 2026 at 8:48 PM.