Mortgage rates rose this week, with the average 30-year fixed mortgage rising to 6.3%.
The main factor behind the rise in mortgage rates is the escalation of tensions between the United States and Iran that drove up oil prices.
The 15-year fixed-rate mortgage also rose, rising to 5.64 from 5.58 last week.
The rise in current mortgage rates is timely for the spring home buying season. Current mortgage rates tend to follow the 10-year Treasury rate, which has risen sharply recently due to the threat of inflation caused by high energy prices.
Current mortgage rates fell below 6% in late February for the first time since late 2022, but after the conflict in the Middle East began, they rose above 6% and have remained above that level since.
Despite the bullish movement, some buyers are still ahead. The Mortgage Bankers Association revealed that the number of applications increased to 21% compared to the same period last year.
The Federal Reserve announced Wednesday, April 29, that it will continue to delay interest rate cuts, citing high oil prices as a contributing factor.
As of April 30, the current mortgage rates are:
- 30 years fixed at 6.11%
- 20 years fixed at 6.08%
- 15 years fixed at 5.62%
- 5/1 ARM fixed at 6.11%
The yield on the 10-year Treasury bond was 4.39%, up from 4.34% last week, while before the outbreak of the Iran war in late February it was at 3.97%.
