Landing a decent borrowing rate is a lot like finding a needle in a haystack. We’re dealing with a market that’s strained by high inflation risk and tight monetary policy, and so good deals are getting hard to come by. Well, those deals are going to be even fewer and far between thanks to the war in Iran.
Everybody knows that inflation influences borrowing costs. But one factor investors haven’t been pricing into mortgage rates is geopolitics. Since the conflict began a few weeks ago, U.S. mortgage rates have spiked above 6.22%. We’ve not seen rates like that in a while, and it’s a painful reminder that geopolitical stress can have major ripple effects on the everyday economy.
