Key facts
- Thirty-year mortgage rates rose to 6.603% this week.
- The increase in mortgage rates reverses a prior downward trend.
- Elevated Treasury yields are driving the rise in mortgage rates.
- Spiking oil prices are linked to the war in Iran.
- Higher mortgage rates have dampened mortgage applications.
- Potential buyers are being pushed to the sidelines.
This week, thirty-year mortgage rates reached 6.603%, marking an increase that reverses a prior downward trend. The primary driver behind this surge is the elevated yield on Treasury bonds, which in turn is being influenced by a spike in oil prices. These oil price increases are directly linked to the ongoing conflict in Iran. The rising mortgage rates have had a noticeable effect on the housing market, leading to a dampening of mortgage applications. Consequently, potential homebuyers are being pushed to the sidelines, hesitant to enter the market under the current conditions of higher borrowing costs.