The Iran war is making life more expensive for Americans | CNN Business

The war with Iran has roiled Wall Street, driving up the cost of a mortgage along with auto and credit card loans, making everyday life more expensive for Americans. Mortgage rates climbed for five straight weeks after the war began, but ticked down this week to 6.37% for the average 30-year fixed mortgage, according to Freddie Mac. Just weeks ago, borrowing was far cheaper. In late February, just two days before the United States and Israel began joint strikes on Iran, the average 30-year fixed mortgage rate fell to 5.98%, dipping below 6% for the first time in more than three years. Different consumer borrowing rates track different metrics. Some loans, for example, track US Treasuries; those yields are up now as investors worry about inflation. Other borrowing is pegged to the interest rate set by the Federal Reserve. The Fed has been in a holding pattern on rates lately, a stance that’s likely to continue if rising energy costs reignite inflation. Mortgage rates tend to track the 10-year US Treasury yield, which has climbed across the past month as investors have reckoned with the surge in oil prices, nerves about inflation and the potential for increased government spending