Mortgage rates in the U.S. jumped to a three-month high this week, adding strain to the housing market as the spring buying season begins. The 30-year fixed mortgage rate rose to 6.22% for the week ending March 19, up from 6.11% the previous week, according to Freddie Mac.
War Abroad Is Pushing Borrowing Costs Higher
The increase follows the outbreak of the Iran conflict, which has tightened global energy supplies and lifted oil prices, fueling inflation expectations. The 10-year Treasury yield, which influences mortgage rates, rose to 4.26% from 3.96% before the conflict.
Mortgage applications fell nearly 11% from the prior week. New single-family home sales dropped nearly 18% in January from the previous month and were down 11.3% from a year earlier, according to the Census Bureau.
The Federal Reserve kept interest rates at 3.5%–3.75%, …
