US mortgage rates climb to a five-week high but homebuyers stay active
The average 30-year fixed mortgage rate in the United States rose to its highest level in five weeks as inflation accelerated and the Iran war kept oil prices high. Despite the jump, the Mortgage Bankers Association said new purchase applications kept climbing.
The average rate on the 30-year fixed mortgage rose to 6.87% last week, its highest level since early April, according to the Mortgage Bankers Association. The jump followed a US inflation print that climbed to 3.8%.
Despite the cost increase, mortgage purchase applications rose 1.5% week on week. Brokers say buyers are rushing to lock in deals before further increases, while refinance applications continued to slide.
Economists expect rates to stay choppy over the coming weeks as the Senate prepares to vote on a new Federal Reserve chair and the Iran war keeps pressure on energy prices. Data from Realtor.com and Redfin show housing inventory gradually rising as the spring buying season unfolds.
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