US 30-Year Mortgage Rate Hits 6.65% 9-Month High as Iran War Stokes Inflation Fears
Updated
Updated · Reuters · May 27
US 30-Year Mortgage Rate Hits 6.65% 9-Month High as Iran War Stokes Inflation Fears
3 articles · Updated · Reuters · May 27
The average U.S. 30-year fixed mortgage rate climbed 9 basis points to 6.65% in the week ended May 22, its highest level since August 2025, according to the Mortgage Bankers Association.
Oil prices elevated by the Iran war lifted inflation worries and pushed Treasury yields higher, tightening mortgage costs even as bond yields eased this week on hopes of reopening the Strait of Hormuz.
Mortgage applications fell 8.5% from a week earlier, led by a drop in refinancing activity as borrowers pulled back from the higher rates.
Inflation has accelerated to 3.8% in April from 2.9% last August while unemployment held at 4.3%, prompting markets to price in a possible Fed rate hike by year-end.
The rise came as Kevin Warsh replaced Jerome Powell as Fed chair; President Donald Trump said he expected rates to fall, but markets are moving the other way.
With a new Fed chair and Mideast war, will the dream of homeownership slip further away for many?
Can the new Fed chief's anti-inflation stance survive a slowing economy and pressure for rate cuts?
The Iran war is disrupting more than oil. Is the global economy on the brink of a major supply shock?