U.S. mortgage rates tick upward to 6.6% amid geopolitical pressure

According to Freddie Mac, the weekly average rate for a 30-year fixed-rate mortgage in the United States increased marginally to 6.6%, up 0.01 percentage point from the prior week. Daily tracking by Mortgage News Daily reflected a comparable uptick, posting a rate of 6.75% after a similar rise the day before. Borrowers should not anticipate a sharp fall in rates soon, citing inflation concerns tied to the U.S. and Israel's war against Iran that began in February.

Prior to the conflict, rates had briefly slipped below 6% for the first time since 2022. A recent housing-affordability study from the Salt Lake Board of Realtors blamed “geopolitical tensions and new inflation data” for the recent surge, projecting that rates will stay high throughout the year and limiting buyers’ options. The report illustrated that a one-point drop in rates would lower the required household income for a typical home in Salt Lake County from nearly $187,000 to just under $172,000.