The average 30-year fixed mortgage rate climbed to 6.66% this week, the highest level in 12 months, as ongoing fighting in Iran pushes Treasury yields higher and stokes concerns about persistent inflation.
The Federal Reserve kept its key rate at 3.5%-3.75% yesterday, but three policymakers broke ranks to demand a hike—the most dissent in nearly a decade. Mortgage rates remain elevated as inflation concerns linger.
Mortgage rates delivered conflicting signals to borrowers this week, with different lenders reporting opposite movements as the Federal Reserve prepares to meet on rate policy.
Markets now see a one-in-three chance the Federal Reserve will raise rates this week as oil prices surge and Chair Warsh signals unwavering commitment to controlling inflation.
The 30-year fixed mortgage rate climbed to 6.58% this week, the highest level in nearly a year, driven by surging oil prices and renewed inflation concerns just as the Federal Reserve prepares to meet.
Improved mortgage spreads kept rates under 7% this week even as Treasury yields climbed, while purchase applications edged up 0.2% year-over-year and pending sales remained nearly flat.
The average 30-year fixed mortgage rate climbed to 6.77% yesterday, the highest level since last July, driven by rising oil prices from renewed Middle East tensions and bond market concerns over persistent inflation and federal debt.