"The average rate on a 30-year fixed-rate mortgage rose 13 basis points to 6.24% APR in the week ending May 7, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.) We calculate our weekly average using daily APRs recorded over the last five business days."
"But if we're looking at where rates are now, day-over-day we saw a significant drop as markets reacted to the potential for an end to the war in Iran. It wasn't a large enough fall to erase the past few days' increases. Monday through Wednesday rates were higher as the situation in Iran looked uncertain. Still, mortgage rates today are well below where they were yesterday."
"Why Iran matters to mortgage rates Daily mortgage rate movement has been driven by the Iran war since its inception. It's not the easiest path to follow, but let's break it down. Higher fuel prices have been a major effect of the conflict. Iran is an important oil producer and sits next to the Strait of Hormuz, a key route for global oil shipments. Any disruption there can tighten supply, and we've now had two-plus months of upheaval. Rising energy costs have sparked fears that inflation - which was already running hot - could intensify."
"While the stock market has been remarkably strong, inflation concerns have caused trouble for the bond market. Bonds pay a fixed return, called a yield. In an inflationary environment, that fixed return is less desirable. And when investors buy fewer bonds, pri"
The average 30-year fixed-rate mortgage rose 13 basis points to 6.24% APR in the week ending May 7, based on daily APRs recorded over the last five business days. Rates then fell day over day as markets reacted to potential progress toward an end to the war in Iran, though the drop did not fully offset earlier increases. Future rate movement depends on near-term developments in Iran and longer-term conditions in the U.S. economy. Iran affects mortgage rates through potential disruptions to oil supply near the Strait of Hormuz, which can raise fuel prices and intensify inflation fears. Inflation concerns weaken the bond market because fixed bond yields become less attractive, reducing bond demand.
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