Mortgage Rates Surge Amid Iran Conflict

The average rate on a 30-year fixed mortgage has reached its highest level in nearly 12 months, according to Freddie Mac. This week's benchmark 30-year fixed rate mortgage rate rose to 6.58% from 6.55% last week.

Rising oil prices due to the conflict in Iran are driving up long-term bond yields and causing mortgage rates to trend higher. The 10-year Treasury yield was 4.7% at midday Thursday, up from 4.57% a week ago.

Lisa Sturtevant, chief economist at Bright MLS, notes that while average long-term mortgage rates remain lower than they were at this time last year, their upward trajectory has weighed on home sales this year.