Mortgage rates moved higher this week as the US and Iran traded new strikes, sending bond yields and oil prices higher once again.
The average 30-year mortgage rate was 6.49% this week through Wednesday, according to Freddie Mac data, up from 6.43% a week earlier.
The fragile ceasefire between the US and Iran collapsed earlier this week, with President Trump declaring Wednesday that an agreement between the two nations to work toward a peace deal was “over.” Treasury yields, which mortgage rates closely track, have moved higher in recent days amid new fears that higher oil prices will lead to prolonged inflation.
“Mortgage rates looked like they were poised for a retreat in recent weeks, but the deterioration of the situation in Iran has put them on an upward trajectory yet again,” Realtor.com senior economist Joel Berner said in a statement.