Mortgage rates surge to nearly four-week high as Iran headlines impact markets
CNBC • • business
Key Points:
- Mortgage rates rose sharply on Wednesday, with the average 30-year fixed mortgage rate increasing to 6.45%, the highest since April 3, following President Trump's announcement to maintain the U.S. naval blockade against Iran.
- The announcement led to higher oil prices and bond yields, causing mortgage rates to climb after weeks of relative stability.
- Despite higher rates since the start of the Iran conflict, mortgage applications to buy homes surged 1% last week and were up 21% compared to the previous year, indicating increased buyer activity.
- More housing supply is entering the market, and some regions are seeing a slight easing in home prices, with real estate brokerages reporting increased buyer traffic amid economic uncertainty.
- The Federal Reserve is not expected to change interest rates at its upcoming meeting, and it remains uncertain how the recent rate increase will impact the spring housing market.
