world-economy

Mortgage Rates Climb to Year-High as Geopolitical Tensions Drive Up Energy Costs

The average 30-year fixed-rate mortgage climbed to 6.66% this week, marking the highest level in twelve months. The spike reverses earlier momentum, when rates dipped below 6% in February. Escalating tensions in Iran and closure of the Strait of Hormuz drove crude prices higher. This increased shipping expenses across supply chains and pushed up costs for goods and services. Those inflationary pressures lifted yields on the 10-year Treasury note, which closely influences mortgage rate movements. Economists warn that oil price volatility directly impacts home affordability. According to housing experts, without a decisive resolution to geopolitical conflicts, market participants are likely to remain cautious about rate direction.