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Mortgage rates edge up as oil prices rise on Strait of Hormuz risks

Mortgage News Daily said the top tier 30-year fixed rate was up 0.04% for the average lender, with potential late-day lender changes.

Reported · Written up by our desk · Mortgages

Mortgage News Daily reports that mortgage rate pricing is moving slightly higher as oil prices rise amid growing concerns over oil flow through the Strait of Hormuz.

The outlet links the shift to increasing uncertainty around a U.S.-Iran peace deal and recent headlines suggesting the U.S. may be withdrawing authorization for Iran to export oil after Iran attacks on cargo vessels, which has pressured crude prices.

Rising oil costs can add to inflation expectations, and higher inflation generally translates into higher interest rates, all else equal, the outlet said.

Despite that connection, Mortgage News Daily noted the net effect on mortgage rates is modest at the time of publication, with the average lender's top tier 30-year fixed rate up 0.04%, though late day lender changes could push rates further higher.

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