Mortgage rates rose this week, with the average 30-year fixed mortgage rising to 6.3%.
The primary factor behind rising mortgage rates is escalating tensions between the US and Iran, which 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 track the 10-year Treasury rate, which has risen sharply recently due to the inflationary threat posed by high energy prices.
Current mortgage rates fell below 6% at the end of February for the first time since the end of 2022, but after the conflict in the Middle East began, they rose above 6% and have since remained above this level.
Despite the upward movement, some buyers are pushing ahead. The Swedish Mortgage Council revealed that the number of applications rose to 21% compared to the same period a year ago.
The Federal Reserve announced on Wednesday, April 29 that it is continuing to hold off on interest rate cuts, citing high oil prices as a contributing factor.
Per On 30 April, the current mortgage interest rates are:
- 30-year fixed at 6.11%
- 20-year fixed at 6.08%
- 15-year fixed at 5.62%
- 5/1 ARM set at 6.11%
The yield on the 10-year Treasury note was at 4.39%, up from 4.34% last week, while it was at 3.97% before the outbreak of the Iran war in late February.
