U.S. 30‑year mortgage rate rises to nine‑month high

The average long-term U.S. mortgage rate has risen to its highest level in nine months, adding pressure to an already strained housing market. The benchmark 30-year fixed-rate mortgage averaged 6.53% this week, according to data released Thursday by Freddie Mac, up from 6.51% last week.

This increase continues a trend of rising borrowing costs linked to geopolitical tensions and inflation concerns. Rates have been climbing since late February, when military conflict involving the United States, Israel, and Iran began disrupting oil tanker traffic through the Strait of Hormuz. The resulting rise in oil prices has contributed to broader inflation worries, pushing up yields on long-term U.S. Treasury bonds, which mortgage rates generally follow.

The impact on the housing market is becoming increasingly clear. Data from the Mortgage Bankers Association shows overall mortgage application volume fell 8.5% last week, driven largely by a sharp decline in refinancing activity. Separate reports indicate pending home sales have declined for two consecutive weeks, and sales of newly built homes fell 6.2% in April.

While the current average rate remains below the 6.89% level of a year ago,...