The Iran war is making life more expensive for Americans
CNN • • business
Key Points:
- The war with Iran has caused mortgage rates to rise for five consecutive weeks, increasing the cost of home loans and other borrowing for Americans; the average 30-year fixed mortgage rate recently dropped slightly to 6.37% but remains higher than before the conflict began.
- Mortgage payments on a $500,000 home have increased by over $1,200 annually compared to rates in February, potentially costing homebuyers more than $36,000 over a 30-year loan.
- Rising Treasury yields are also affecting auto loan rates, which have plateaued around 7%, leading to higher monthly payments for car buyers amid already elevated vehicle prices and gas costs.
- Credit card interest rates remain above 19%, with little expectation they will decrease soon due to the Federal Reserve holding rates steady amid economic uncertainty caused by the war.
- Overall, the conflict is driving up borrowing costs across multiple sectors, contributing to increased financial pressure on everyday Americans.
