Mortgage rates rise for fifth straight week as Iran war continues to roil markets

• The 30-year fixed mortgage rate climbed to 6.46%, while 15-year fixed rates rose to 5.77%, marking five straight weeks of increases
• Mortgage rates track the 10-year Treasury yield, which hovered around 4.3%, with geopolitical tensions in Iran contributing to market uncertainty
• Freddie Mac's chief economist advises buyers to shop around for rates, noting they can save thousands of dollars by getting multiple quotes during spring homebuying season

Summary

Key Development:

Mortgage rates increased for the fifth consecutive week, with the 30-year fixed mortgage rate rising to 6.46% from 6.38% the previous week, according to Freddie Mac's Primary Mortgage Market Survey released Thursday. This marks a decline from 6.64% one year ago.

Market Drivers:

The rate increase is attributed to ongoing geopolitical tensions stemming from the Iran conflict, which continues to impact financial markets. The 10-year Treasury yield, which mortgage rates closely track, hovered around 4.3% as of Thursday afternoon.

Additional Data Points:

• 15-year fixed mortgage rates also rose to 5.77% from 5.75%
• Mortgage rates are influenced by Federal Reserve policy and geopolitical events, though not directly tied to Fed rate decisions

Market Context:

The rate increases come during peak spring homebuying season, a traditionally active period for real estate transactions. Sam Khater, Freddie Mac's chief economist, emphasized that prospective buyers should shop around for competitive rates, noting they could "potentially save thousands of dollars by getting multiple quotes."

Implications:

Rising mortgage rates present headwinds for the housing market by reducing affordability for potential homebuyers. The consecutive weekly increases signal sustained pressure on borrowing costs, which could dampen home sales activity during the typically robust spring season. The geopolitical uncertainty adds volatility to rate movements, creating an unpredictable environment for both buyers and the broader real estate sector.