Freddie Mac said the average 30-year fixed rate edged up from 6.55% a week earlier as Middle East tensions lifted oil prices and pushed mortgage costs to their highest level in nearly a year.
The average U.S. 30-year fixed mortgage rate climbed to 6.58% this week from 6.55% the previous week, marking its highest level this year and its highest point in nearly a year. Freddie Mac data showed 15-year mortgage rates also rose, to 5.96% from 5.93%. The increase came as escalating tensions involving Iran fueled concerns about oil prices and inflation, pressures that helped lift the 10-year Treasury yield, which mortgage rates closely track. Even with borrowing costs elevated, mortgage applications for home purchases rose 6% from a week earlier, suggesting some buyers are still moving ahead as housing inventory improves in some markets.