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Mortgage rates rise to highest level since August amid oil and Iran jitters
Freddie Mac data showed the average 30-year fixed rate at 6.58% and the 15-year rate at 5.96% as oil climbed above $100 per barrel and the 10-year Treasury yield moved higher.
Mortgage rates climbed to their highest level in nearly a year as renewed geopolitical tensions, including the escalation of the Iran war, pushed investor concerns about inflation and oil prices, Yahoo Finance reported.
Freddie Mac data showed the average 30-year fixed-rate mortgage rose to 6.58% through Wednesday, up from 6.55% a week earlier. The average 15-year mortgage rate increased to 5.96%, from 5.93%.
The article said rising oil prices, with crude crossing $100 per barrel for the first time since May, helped lift the 10-year Treasury yield, a key benchmark that mortgage rates track.
Despite the higher borrowing costs, mortgage applications for home purchases rose 6% through Friday from a week earlier, according to the Mortgage Bankers Association, with MBA president and CEO Bob Broeksmit attributing the uptick to improving inventory even as rates remain elevated. Zillow senior economist Kara Ng said the renewed geopolitical tensions have brought back inflation risks.
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