Mortgage Rates Climb for 5th Week as Iran War Weighs on U.S. Housing Market
The New York Times • • business
Key Points:
- The average 30-year fixed mortgage rate in the U.S. rose to 6.46%, the highest since September, reversing hopes of a housing market thaw amid the ongoing Middle East conflict.
- The war has driven oil prices up by more than 50% since February, pushing gasoline prices to $4.08 per gallon and raising concerns about inflation.
- Elevated energy costs have increased inflation expectations, with the OECD projecting U.S. inflation to reach 4.2% in 2024, contributing to higher mortgage rates.
- The housing market remains constrained as homeowners with low locked-in rates hesitate to sell, and the recent dip in mortgage rates and home price cooling have been offset by geopolitical tensions.
- Economists warn that as long as the conflict threatens petroleum prices, mortgage rates are likely to stay high, stalling the momentum in homebuyer demand.
