Mortgage rates hit highest level since August as oil's rise sparks inflation worries
Mortgage rates hit highest level since August as oil's rise sparks inflation worries.
Mortgage rates hit highest level since August as oil's rise sparks inflation worries.
Mortgage rates reached their highest level in nearly a year as the Iran War continued to escalate, stoking fresh fears from investors about inflation and oil prices.
The average 30-year fixed-rate mortgage rate rose to 6.58% through Wednesday, according to Freddie Mac data, up from 6.55% a week earlier. Fifteen-year mortgage rates jumped to 5.96%, from 5.93%.
"Renewed geopolitical tensions have reintroduced inflation risks, pushing mortgage rates to their highest level in nearly a year, and threatening to turn recent housing market affordability tailwinds into headwinds," Kara Ng, senior economist at Zillow, said in a statement.
The 10-year Treasury yield, which mortgage rates closely track, has risen in recent days amid rising tensions between the US and Iran. On Thursday, oil prices crossed $100 a barrel for the first time since May, sparking new concerns that inflation may soon accelerate.
Although mortgage rates are sitting at their highest level since last August, at least some homebuyers are moving forward. Mortgage applications for home purchases were up 6% through Friday from a week earlier, according to the Mortgage Bankers Association.
How are geopolitical tensions affecting housing market affordability?
Are homebuyers still active despite elevated borrowing costs?
"As inventory improves in many markets, more prospective buyers are finding opportunities to enter the market even as borrowing costs remain elevated," MBA President and CEO Bob Broeksmit said in a statement.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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