Average 30-year fixed mortgage rates rise to 6.58% as oil prices top $100, fueling concerns over persistent inflation.
US mortgage rates reached their highest level since August, driven by escalating geopolitical tensions and surging oil prices. The average 30-year fixed-rate mortgage climbed to 6.58%, up from 6.55% a week earlier, while 15-year rates rose to 5.96% from 5.93%.
The increase follows a rise in the 10-year Treasury yield, which mortgage rates closely track, amid renewed inflation worries. Oil prices breached $100 a barrel for the first time since May, heightening concerns that inflation may reaccelerate.
Despite higher borrowing costs, mortgage applications for home purchases rose 6% week-over-week, as improving inventory levels encouraged some buyers to proceed. Analysts warn that sustained rate increases could reverse recent gains in housing affordability.