Economic conditions continue to keep the costs of a home loan higher, with the war in Iran, inflationary concerns and a slow but stabilizing job market serving as the key headwinds to a potential spring housing market surge. Mortgage rates moved higher for a second straight week, according to HousingWire’s Mortgage Rates Center. Rates for 30-year conforming loans stood at 6.49% on Tuesday, up 5 basis points from one week ago and 10 bps higher than two weeks ago. Meanwhile, rates for 30-year loans through the Federal Housing Administration (FHA) increased 3 bps to 6.19% and rates for 30-year jumbo loans were unchanged at 6.29%. HousingWire’s data analyzed locked loan rates across all borrower credit profiles. Mortgage News Daily, which relies on best-execution pricing from lender rate sheets, reported Monday that 30-year fixed rates were at 6.49%, up 7 bps since Friday. “This follows news over the weekend that Trump rejected Iran’s counterproposal to end the war,” MND explained. “In general, the longer the war continues, the higher oil prices will remain.” Higher oil prices have factored into higher inflation, which will also have an impact on borrowing costs moving forward. Data released Tuesday by the U.S. Bureau of Labor Statistics showed that the all-items index for April was up 0.6% from March, which was slower than the 0.9% increase from February to March. On a yearly basis, however, inflation in April rose to 3.8%, compared to 3.3% in March.
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