Mortgage rates have surged to 6.62%, rising from below 6% as escalating conflict in Iran creates market uncertainty. The rate increase represents a significant jump that brings borrowing costs closer to 7% than to 6%, according to HousingWire.
Purchase applications have responded to the rate shock with a 5% decline, reflecting immediate buyer hesitation as affordability deteriorates. The geopolitical tensions are creating additional volatility in bond markets, which directly influence mortgage pricing.