Mortgage rates surged to 6.5% this week as Treasury yields climbed to their highest point since last July, driven by inflation fears linked to rising crude oil prices. Oil has crossed $100 per barrel amid ongoing U.S.-Iran tensions, creating pressure on borrowing costs across financial markets.
The rate increase marks a significant jump for prospective homebuyers who were already navigating a challenging affordability landscape. Treasury yields, which directly influence mortgage pricing, have responded sharply to commodity market volatility and geopolitical uncertainty in the Middle East.