US mortgage rates fluctuate amid housing market shifts

Mortgage rates have experienced recent volatility driven by varying economic indicators. The average interest rate on a 30-year fixed-rate mortgage rose to 7.28% APR, according to Zillow data, reflecting a slight uptick attributed to geopolitical concerns regarding potential hostilities in Iran.

Conversely, mortgage rates have seen downward pressure due to a significant decline in pending home sales. Data from the National Association of Realtors indicates that pending home sales fell 7.3% in September, reaching their lowest level since 2001. This unexpected weakness in the housing market has pushed bond yields lower, which typically translates to slight decreases in mortgage rates.