Overview
- The average 30-year fixed rate, which Freddie Mac reported Thursday, rose to 6.3% from 6.23% a week earlier and ended a three-week decline.
- Recent daily quotes put new purchase loans in the mid-6% range, with Mortgage News Daily noting moves that track oil prices as the Iran conflict drives energy costs higher.
- Oil-driven costs raise inflation expectations that lift the 10-year Treasury yield, a benchmark lenders use to set mortgage pricing.
- Inflation ran at 3.3% year over year in March, and the Federal Reserve kept policy rates unchanged in April, signaling little urgency to cut.
- Buyer interest has shown resilience in mid-April, and major forecasts from J.P. Morgan and Fannie Mae point to 30-year rates staying above roughly 6% in the near term.