"A conflict in Iran might seem far removed from your house hunt or refinance decision, but energy markets tie events overseas to costs much closer to home. In this case, attacks on commercial ships in the Strait of Hormuz - a key oil shipping route in the Persian Gulf - have raised fears of supply disruptions, sending oil prices higher. Rising oil prices can spike inflation, which in turn can push mortgage rates higher."
"This data provides a baseline from which to measure the impact of the war in Iran on energy prices and beyond. The longer the conflict continues, the greater the risk of it pushing overall inflation upward."
"When inflation and mortgage rates go up, that reduces home buyers' spending power - chipping away at how much house you can afford."
The ongoing Iran conflict creates market uncertainty affecting mortgage rates and inflation. The average 30-year fixed-rate mortgage rose to 5.98% APR, a seven basis point increase. Attacks on ships in the Strait of Hormuz, a critical oil shipping route, threaten supply disruptions and raise oil prices. Higher oil prices increase inflation, which subsequently pushes mortgage rates higher. February's CPI remained steady at 2.4%, but this data predates the Iran conflict. The longer the conflict persists, the greater the risk of inflation acceleration. Rising inflation and mortgage rates reduce home buyers' spending power and affordability.
Read at SFGATE
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