Mortgage rates moved slightly higher this week, with the average rate on a 30-year fixed-rate mortgage rising four basis points to 6.51% APR in the week ending July 23, according to rates provided to NerdWallet by Zillow.

Understanding Mortgage Rate Fluctuations

Ups and downs are normal in the mortgage market. This week’s increase was modest, given the growing instability in the Middle East. The re-escalation of fighting with Iran pushed Brent crude prices — the global oil benchmark — above $100 a barrel, the highest level since May. Higher energy costs fan the flames of inflation, which puts upward pressure on mortgage rates.

For homebuyers, the best way to judge mortgage rates isn’t week over week — it’s against your own timeline. If you’re just starting your house hunt, focus on what you can control: knowing how much house you can afford. Then, compare offers from at least three mortgage lenders.

If you’ve been searching for a few months, the longer your home search lasts, the more invested you become in what mortgage rates do next. But don’t count on relief coming just around the corner. Renewed fighting in Iran has revived inflation concerns.

Inflation fears have increased the likelihood of a Federal Reserve rate hike later this year. While the Fed is likely to hold the federal funds rate steady at its July meeting, odds of a rate hike are currently over 55% for September, according to CME FedWatch.

Advice for Homebuyers

Keep in mind that mortgage rates aren’t the only part of the equation. As summer winds down, sellers are often more willing to negotiate. Rather than stressing about recent rate trends, know where you have leverage as a buyer and don’t be afraid to use it.

Original reporting: KTBS 3 (Shreveport) — read the source article.