US Mortgage Rates Hit 6-Month High Amid Rising Geopolitical Tensions

U.S. mortgage rates have climbed for the fourth consecutive week, solidifying their position at a six-month high. This sustained upward trend has significantly dampened hopes for improved housing affordability during the crucial spring home-buying season. Notably, rates had briefly fallen below 6% for the first time since 2022 just days before the commencement of "Operation Epic Fury" in late February. The subsequent geopolitical instability has since reversed those gains, creating additional hurdles for prospective buyers. Despite the pressure, bond-buying activities by Freddie Mac and Fannie Mae continue to act as a buffer against even higher rates. These government-sponsored enterprises are providing essential support to the mortgage bond market during this period of heightened volatility. The persistent rise reflects broader upward pressure on yields, maintaining a bearish outlook for the U.S. real estate sector.