Syndicated post from InmanNews.
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Mortgage rates surged higher this week as the market responded to the war with Iran, rapidly eroding purchasing power from homebuyers who are headed into real estate’s peak season.
Mortgage rates had fallen to the lowest point in more than three years last month. That was before the U.S. and Israel began a military campaign in Iran that sent gas prices skyrocketing.
But as the military campaign ramped up, rates followed, rising from a low of 5.99 percent near the end of February to 6.62 percent as of Friday afternoon, according to Mortgage News Daily.
As a result, a buyer attempting to buy a median-priced home with a 20 percent down payment would have lost more than $21,000 in purchasing power without increasing their monthly payment.
Use the tool below to see how much purchasing power the ongoing rate spike has eroded.
Also, explore the graph below to better understand how mortgage rates have evolved this year amid political and geopolitical uncertainty.
