US home prices rise 0.1 percent as mortgage rates climb
The Federal Housing Finance Agency reported a slight 0.1 percent increase in house prices for March, though rising mortgage rates linked to regional conflict are expected to dampen future demand. While prices rose 1.7 percent annually, higher Treasury yields have pushed the 30-year fixed mortgage rate to a nine-month high of 6.51 percent.
United States single-family home prices rose 0.1% in March, according to the Federal Housing Finance Agency. The slight gain follows a downwardly revised 0.1% dip in February. Higher mortgage rates driven by geopolitical conflict now threaten to stall further appreciation for residential real estate investors.
### Geopolitical Tension Drives Mortgage Rates The war involving Israel and Iran has pushed oil prices higher and fanned inflation, boosting Treasury yields. Mortgage rates track the 10-year Treasury note, which is currently hovering near a 1.5-year high. Freddie Mac showed the 30-year fixed mortgage rate averaged 6.51% last week, marking a nine-month peak.
