Overview
- U.S. mortgage applications fell 10.5% last week and refinance activity dropped 15% as the average 30‑year fixed hit 6.43%, the highest since October 2025, according to the Mortgage Bankers Association.
- Zillow’s latest reads show 30‑year purchase rates in the mid‑6% range and 30‑year refinance quotes near 6.7% to 6.9%, confirming the rebound from early‑March lows.
- In the U.K., Moneyfacts said average two‑year fixed rates rose to 5.56% and edged above five‑year fixes at 5.54%, a rare inversion that reflects pricier short‑term funding.
- Choice has narrowed as lenders pulled more than 1,500 home‑loan options since early March, including 204 low‑deposit 95% deals, which Moneyfacts estimates adds about £1,200 a year for a £250,000 loan on a typical two‑year fix.
- Analysts tie the moves to oil‑driven inflation pressure from the Iran conflict, which lifted Treasury, gilt, and swap rates that lenders use to set fixed mortgages, cooling the spring buying season and curbing the refinance wave.