Mortgage rates climb to highest level in more than 3 months as Iran war reignites inflation fears | CNN Business

The war in Iran is driving up the cost of buying a home in America. The average 30-year fixed mortgage rate rose to 6.22% this week, up from 6.11% the week before. It’s the highest level since early December, reflecting the inflation fears rippling through markets. Less than a month ago, rates had fallen below 6% for the first time in more than three years, a key psychological threshold that some experts believed could reignite home buying and selling ahead of the spring homebuying season. But since then, the US-Israeli war on Iran, which began in late February, has sent energy prices skyrocketing. Mortgage rates closely track the US 10-year Treasury yield, which is seen as a gauge of how investors feel about future inflation and economic growth. The 10-year yield this week fluctuated, but on Thursday hovered around its highest level in nearly two months after briefly touching its highest level since August. The 10-year yield climbed from 3.96% before the war started to roughly 4.28% this week. The move indicates that many investors fear higher oil prices could trigger inflation. Higher mortgage rates may already be weighing on the spring homebuying season. According to a separat