Potential homebuyers who've been looking forward to the spring selling season may be watching with trepidation as interest rates on mortgages tick higher.
As of Thursday, the average rate for a 30-year fixed-rate mortgage with a conforming loan balance — that is, $832,750 or less — was 6.35%, according to Mortgage News Daily. About two weeks earlier, ahead of the U.S. and Israel launching military strikes against Iran, it was 5.99%.
"High oil prices are not good for mortgage rates," said Lawrence Yun, chief economist for the National Association of Realtors.
However, a year ago, the average rate was higher: 6.82%. And it was about 8% in October 2023. There are also other indications that affordability has improved, albeit slowly.
Nevertheless, for buyers concerned that oil-driven rates could fall after they've committed to a purchase and picked a mortgage lender, there may be ways to mitigate that, experts say.
