AI Generated Image
Mortgage rates hit a one-year high : NPR
NPR • • business
Key Points:
- The average 30-year fixed-rate mortgage reached 6.66% this week, the highest in a year, signaling decreased affordability for homebuyers.
- Rising oil prices due to the war with Iran and the closure of the Strait of Hormuz have increased shipping costs, driving up inflation and mortgage rates.
- The yield on the 10-year Treasury note, closely tied to mortgage rates, has risen alongside oil prices, reflecting increased borrowing costs.
- Investor uncertainty persists due to ongoing conflict in Iran and a potential Federal Reserve interest rate hike signaled for September, contributing to market volatility.
- High home prices, with the average existing home selling for over $440,000 in June, and declining sales have kept the housing market subdued over the past three years.
