US 30-Year Mortgage Rate Hits 7.24% as Iran War Fuels Oil and Inflation Fears
Updated
Updated · The Washington Post · Nov 8
US 30-Year Mortgage Rate Hits 7.24% as Iran War Fuels Oil and Inflation Fears
3 articles · Updated · The Washington Post · Nov 8
Summary
Freddie Mac put the average 30-year fixed mortgage rate at 7.24% on Oct. 29, up from 6.17% a year earlier, squeezing buyers who had been waiting for borrowing costs to ease.
Rising oil prices tied to the Iran war are lifting inflation worries and Treasury yields, and mortgage rates are tracking those moves instead of falling on a typical flight to safety.
A $400,000 loan at 6.5% carries about a $2,528 monthly principal-and-interest payment; a 1-point rise pushes that to roughly $2,797, adding nearly $100,000 over 30 years.
Lenders and advisers say even a half-point increase can price out some buyers, making comparison shopping, rate locks and budgeting above today's quote more important.
The broader message for homebuyers is to buy only if today's payment works, not on the assumption that geopolitical tensions will fade or refinancing will soon get cheaper.