Home loan costs ticked upward again this week as the ongoing conflict in Iran continues to ripple through financial markets, according to the latest data from Freddie Mac.
The government-sponsored enterprise’s Primary Mortgage Market Survey showed the average rate on a 30-year fixed mortgage rose to 6.46 percent, up from 6.38 percent the previous week.
For comparison, the same loan carried an average rate of 6.64 percent a year ago — meaning borrowers today still face moderately lower costs than twelve months ago despite the recent uptick.
Shorter-term loans also moved higher. The benchmark 15-year fixed rate climbed to 5.77 percent from 5.75 percent.
“With spring homebuying season in full swing, aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes,” said Sam Khater, Freddie Mac’s chief economist.
Mortgage rates don’t move in lockstep with the Federal Reserve’s policy decisions, but they do track closely with the 10-year Treasury yield — which hovered near 4.3 percent as of Thursday. Geopolitical uncertainty, inflation expectations and investor sentiment all influence where that benchmark settles.
The recent surge in rates comes at a delicate moment for the housing market. Spring and early summer typically see the highest volume of transactions, and higher borrowing costs could dampen demand at precisely the time sellers expect the most activity.
For prospective buyers, the math is unforgiving. A single percentage point on a 30-year loan can add hundreds of dollars to a monthly payment and tens of thousands over the life of the mortgage. Shopping multiple lenders, locking rates strategically and considering shorter loan terms remain the most practical strategies for managing costs in this environment.