\n Average US mortgage rates climbed again for the fifth week in a row, making homebuying more expensive than it was just a few weeks ago, before the outbreak of war with Iran.\n <\/p>\n
\n The average 30-year fixed mortgage rate rose to 6.46% this week, jumping from 6.38% the previous week and reaching the highest level in seven months, according to Freddie Mac.\n <\/p>\n
\n The rise may be unwelcome news for those hoping to buy a home this spring, typically the busiest time of year for the housing market. During the last week of February, before the US-Israeli attack on Iran<\/a>, the average 30-year mortgage rate was 5.98%.\n <\/p>\n \n Kara Ng, senior economist at Zillow Home Loans, said the mortgage-rate shock, fueled by bond market turmoil linked to the war in Iran, could stall the spring housing market if the conflict drags on.\n <\/p>\n \n \u201cIf the situation resolves quickly, it\u2019ll be early enough in the home shopping season for catch-up activity,\u201d Ng said. The longer the war drags, though, the more homebuyers could push off until next season, she added.\n <\/p>\n \n Recent volatility in mortgage rates appears to be giving buyers and homeowners pause. Purchase applications fell 3% last week, while refinance applications dropped 17%, according to the Mortgage Bankers Association.\n <\/p>\n \n The jump in mortgage rates has made borrowing money for a home notably more expensive. For example, on a $450,000 home with a 20% down payment, a buyer who locked in a 30-year mortgage in February would pay about $1,346 less per year than someone securing a loan this week. Those savings amount to $40,000 over the life of the loan.\n <\/p>\n \n Mortgage rates tend to track the 10-year US Treasury yield, which pared gains after hitting its highest level since July on Friday.\n <\/p>\n \n Markets have been volatile as investors weigh whether higher oil prices could reignite inflation. This week, the war pushed the average price Americans are paying for gas to more than $4<\/a> for the first time since 2022.\n <\/p>\n \n Faster inflation, in turn, could lead the Federal Reserve to keep interest rates on hold longer \u2013 or even to hike rates.\n <\/p>\n \n Traders are now trying to gauge how long the energy spike may last, Ng said.\n <\/p>\n \n Mortgage rates don\u2019t directly follow the Fed\u2019s policy rate, but the central bank can influence the 10-year Treasury yield.\n <\/p>\n