Freddie Mac says 30-year mortgage rates average 7.32% amid oil crisis
Thirty-year mortgage rates hit 7.32% this week.
The short version
- That is up sharply from 5.98% earlier.
- The Iran conflict pushed oil prices higher.
- Higher rates add thousands to your loan costs.
Check your monthly housing payments again. The U.S. 30-year fixed mortgage rate averaged 7.32% during the week ending on Oct. 22, according to the latest Freddie Mac Primary Mortgage Market Survey, a government-sponsored enterprise that buys mortgage loans from lenders. That is down slightly from the week before, but much higher than a year ago when the rate sat at 6.19%.
Rates dropped below 6% briefly in February. Then the Middle East conflict and a spike in oil prices threw wrench in the housing market, sending borrowing costs back up toward mid-7%. Lenders set rates based on economic factors like inflation and the 10-year Treasury yield, alongside your personal credit score and debt-to-income ratio.
Experian, which provides credit reports and financial data, showed that your rate can vary by more than half a point depending on whether you hold a 620 credit score or an 840 score. Saving for a larger down payment or paying down existing debts before you apply can help lower your costs and eliminate private mortgage insurance if you put down at least 20%.
For anyone looking to buy a home or refinance an existing mortgage, these higher rates mean thousands of dollars more paid out over the life of the loan. Watch your credit score before you talk to a lender.
