Now Reading: US 30-year mortgage rate climbs to 6.861% amid war and inflation
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US 30-year mortgage rate climbs to 6.861% amid war and inflation
US 30-year mortgage rate climbs to 6.861% amid war and inflation
The average interest rate on a 30-year fixed purchase mortgage in the US rose to 6.861% on Monday, up from 6.823% on Friday, according to Zillow data cited by Hindustan Times. The…
The Story in Brief
The average interest rate on a 30-year fixed purchase mortgage in the US rose to 6.861% on Monday, up from 6.823% on Friday, according to Zillow data cited by Hindustan Times. The 30-year refinance rate stands at 6.973%. Rates have been under pressure since the US war in Iran began in late February. When Middle East tensions rise, mortgage rates move higher along with 10-year US Treasury yields. Higher oil prices pushing up inflation are a key factor. July's Consumer Price Index report, due Wednesday, will be closely watched.
The Federal Reserve kept rates unchanged at its July meeting, but three policymakers voted for a quarter-point hike. Inflation is above the Fed's 2% target. The July jobs report showed far fewer new jobs than expected, which may reduce pressure for a rate hike. Experts quoted by the outlet do not expect mortgage rates to fall below 6% soon.
The Indian Opinion
The narrative that US mortgage rates are being driven by geopolitical tensions and Fed caution is true but incomplete. The same war that pushes rates up for Americans also hits Indian import bills via crude oil. Indian readers should watch Wednesday's US inflation number: if it stays above 3%, the Fed may hold or hike, keeping dollar strong and rupee under pressure. That will test whether India's RBI can keep domestic rates steady without fueling imported inflation.
Sources (2): hindustantimes.com, hindustantimes.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
