Mortgage rates rose this week, with the average 30-year fixed mortgage rate rising to 6.3%.
The main factor behind the rise in mortgage rates is escalating tensions between the United States and Iran, which have driven up oil prices.
The 15-year fixed-rate mortgage also rose to 5.64 from 5.58 last week.
Today’s rising mortgage rates come just in time for the spring home buying season. Today’s mortgage rates tend to follow the rate on 10-year Treasury bills, which have 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 start of the Middle East conflict, they rose above 6% and have remained above that level since.
Despite the upward movement, some buyers are moving forward. 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 continues to refrain from cutting interest rates, 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 set at 6.11%
The yield on the 10-year Treasury note was 4.39%, up from 4.34% last week, when it was 3.97% before the outbreak of the Iran war in late February.
