Mortgage Rates Soar to Highest Level Since June 2025 Amid Oil Price Spike
The recent surge in oil prices following renewed hostilities in the Iran war has pushed mortgage rates to their highest level since June 2025.
The average rate on the 30-year fixed loan jumped 6 basis points on Monday to 6.87%, according to Mortgage News Daily, with a monthly principal and interest payment of $2,363 for someone buying a $450,000 home, which is right around the national median.
This marks the highest level since June 2025, up from 5.99% at the end of February, when the war started. The increase in mortgage rates has led to higher debt-to-income ratios for lenders, making it more difficult for borrowers to qualify for a mortgage.
Rebecca Kaufman, associate director of commodities at S&P Dow Jones Indices, noted that current homeowners remain reluctant to give up low mortgage rates secured in prior years as financing costs are kept high for prospective buyers.