WASHINGTON – Home buyers are facing steeper borrowing costs as mortgage rates climb to levels not seen since early fall, driven by economic uncertainty from ongoing Middle East conflicts.
Freddie Mac reported Thursday that 30-year fixed mortgage rates have reached 6.38%, marking the highest level since September and representing a significant jump from the previous week’s 6.22%. This marks the fourth consecutive week of rate increases, challenging efforts by the Trump administration to improve housing accessibility.
The rate increases come as oil prices have surged more than 30% since fighting began in late February, creating inflationary pressures that have pushed up U.S. Treasury yields. Mortgage rates had previously fallen to 5.98% just before the Iran conflict began, following President Trump’s directive for Freddie Mac and Fannie Mae to increase their mortgage-backed securities purchases.
Since mortgage rates typically follow movements in the 10-year Treasury yield, the rising bond market has directly impacted home financing costs. The timing could significantly affect the traditionally active spring home buying season, as higher rates reduce purchasing power for potential buyers.
Housing costs have emerged as a major political concern heading into November’s midterm elections, with affordability becoming an increasingly important issue for voters nationwide.
