US mortgage rates hit 6.43 percent amid Iran conflict
US mortgage rates rose to 6.43% last week as the Iran conflict drove up oil prices. This increase led to a 10.5% decline in total home loan applications.
The interest rate for the most popular home loan in the United States surged last week by the largest margin in 11 months, reaching its highest point since October. This spike is largely attributed to rising oil prices resulting from the conflict involving Iran, which has intensified inflation concerns and driven up Treasury bond yields.
According to the Mortgage Bankers Association (MBA), the contract rate on a 30-year fixed-rate mortgage increased by 13 basis points to 6.43% for the week ending March 20. This follows a period earlier in the month when rates were at their lowest since September 2022. However, since the commencement of military actions involving Israel, rates have climbed 34 basis points in just three weeks.
