Mortgage rates have risen as the U.S.-Iran ceasefire crumbles, with the average rate on a 30-year fixed-rate mortgage increasing to 6.39% APR. This rise is attributed to the escalation of tensions between the U.S. and Iran, which has led to higher oil prices and 10-year Treasury yields.

Impact on Mortgage Rates

The Iran conflict has affected mortgage rates by increasing the yield on the 10-year Treasury note, to which many mortgage lenders peg their rates. As a result, mortgage rates have risen, making it more expensive for potential homebuyers to secure a loan.

The Federal Reserve’s potential rate hikes have also contributed to the increase in mortgage rates. The Fed’s commitment to returning inflation to its target level of 2% has led to expectations of higher interest rates, which has pushed mortgage rates up.

Outlook for Mortgage Rates

With the Iran conflict and potential Fed rate hikes, mortgage rates are likely to continue rising. However, the best-case scenario for mortgage rates is a slow increase rather than a rapid rise. Despite the current rates, they are still almost half a percentage point below where they were a year ago, making it a good time for some buyers to refinance or purchase a home.

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