MarketMoodz
Mortgage rates rise for fifth straight week as Iran war roils markets
Freddie Mac's PMMS shows the 30-year fixed mortgage rose to 6.46% this week, the fifth straight weekly increase. The Iran conflict roils markets, lifting the 10-year yield near 4.3% and pushing borrowing costs higher for homebuyers.
Key Takeaways
- 30-year fixed rate at 6.46% this week, up from 6.38% last week
- 15-year fixed rate rose to 5.77% from 5.75%
- 10-year Treasury yield hovered around 4.3%, supporting higher mortgage rates
- Year-ago 30-year rate was 6.64%
People Involved
- Sam KhaterFreddie Mac Chief Economist
Entities Involved
- Freddie MacGovernment-Sponsored Enterprise; publishes the PMMS data
MarketMoodz Analysis
Rising mortgage rates tighten purchase power and can slow spring homebuying activity, as buyers face higher monthly payments and refinancing decisions become more expensive. The move aligns with a higher rate environment driven by risk premiums from geopolitical tensions and a benchmark shift in long-dated yields.
Historically, mortgage rates trend with the 10-year Treasury and inflation expectations; this week's move fits a multi-week rally toward the 6% area for the 30-year. Investors should watch next week's PMMS release, along with any shifts in Iran-related risk, Fed commentary, and inflation data that could push yields higher or lower.
Source: Original Article