Mortgage rates jump amidst global uncertainty and housing market shifts.
Mortgage rates spiked this week, climbing to 6.38% for a 30-year fixed mortgage, according to Freddie Mac’s latest Primary Mortgage Market Survey released Thursday. This increase from last week’s 6.22% comes as the conflict in Iran adds uncertainty to the markets, according to Fox Business.
Sam Khater, Freddie Mac’s chief economist, noted that despite the volatility, the housing market continues to show gradual improvements compared to last year. Purchase and refinance applications are reportedly up year-over-year.
The average rate on a 15-year fixed mortgage also climbed, reaching 5.75% from the previous 5.54%. These rates are influenced by several factors, including the Federal Reserve and current geopolitical tensions. Mortgage rates tend to closely track the 10-year Treasury yield, which hovered around 4.38% Thursday afternoon.
The rise in mortgage rates could potentially dampen the momentum in the housing market, making home purchases less affordable for prospective buyers. The situation in Iran adds another layer of complexity, as geopolitical events often have ripple effects on financial markets.
While the housing market has shown resilience, the increase in mortgage rates and the ongoing international tensions could pose challenges in the coming weeks.
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