Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
U.S. mortgage rates have risen to 6.57%, the highest since August, largely due to inflation fears fueled by the U.S.-Israel conflict in Iran and rising oil prices. Refinancing applications dropped 17.3%, while home purchase applications fell 2.6%. The 10-year Treasury yield, which heavily influences mortgage rates, climbed as the Middle East tensions disrupted the Strait of Hormuz, pushing global crude prices above USD 118 per barrel. Economists note that although a buyer's market is easing some pressure, overall economic uncertainty is affecting buyer confidence.
The interest rate for the most common U.S. home loan increased last week, reaching levels not seen since August, driven by rising oil prices and global uncertainties. The conflict involving the U.S. and Israel in Iran has intensified inflation concerns, pushing yields on Treasury bonds higher, which lenders use to benchmark mortgage rates. Advertisement
The Mortgage Bankers Association reported that the contract rate on a 30-year, fixed-rate mortgage rose by 14 basis points to 6.57% in the week ending March 27. This increase is the largest weekly rise since the period following President Donald Trump's announcement of unexpectedly high global tariffs. Overall, mortgage rates have risen by 48 basis points since the onset of the U.S.-Israel military action in late February.
Refinancing applications fell sharply by 17.3%, while applications for new home purchases declined by a smaller 2.6%. MBA chief economist Mike Fratantoni explained that while higher rates are a challenge, the abundance of homes on the market is partially easing the impact. He noted that the sudden rate hikes and broader economic uncertainty are affecting buyer confidence.
The yield on the 10-year U.S. Treasury note, a key indicator for mortgage rates, climbed as the Middle East conflict disrupted the Strait of Hormuz, a vital channel for about 20% of the world's oil supply. Global benchmark crude oil prices surged to around USD 118 per barrel, over 50% higher than before the conflict. Despite some easing over the last two trading days due to hopes of a resolution, the 10-year Treasury yield remains elevated at 4.32%, up roughly 35 basis points for the month.
Source Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
