The Mortgage Porter Weekly: Mortgage Rates Steady – Inflation Concerns Linger

Where Are Rates This Week?

As of this week, mortgage rates are averaging **6.083%** according to Optimal Blue Keep in mind, this is an average—your actual rate depends on your credit score, down payment, loan type, and overall financial picture. Rates also change throughout the day, so working closely with your lender is essential.

Current Events: Iran War & Oil Prices

The ongoing conflict in Iran and rising oil prices are making headlines—and impacting the bond market. When oil prices climb, inflation fears tend to follow. Higher energy costs ripple through the economy, affecting everything from transportation to goods prices. That inflationary pressure can push mortgage rates up, even when other indicators suggest rates should be falling.

Economic Events to Watch

Two major inflation reports are coming up that will shape rate direction:

• Consumer Price Index (CPI): This measures the prices consumers pay for everyday goods and services. A hotter-than-expected CPI signals inflation is still strong, which typically pushes rates higher. Cooler readings help rates ease.
• Personal Consumption Expenditures (PCE): This is the Federal Reserve’s preferred inflation gauge. It’s similar to CPI but weighted differently. The Fed uses PCE to guide interest rate policy. If PCE shows inflation cooling, it supports lower mortgage rates.

Mortgage-Backed Securities Update

This week, **MBS are worsening**—prices are down and yields are up, according to MBS Highway. That means upward pressure on mortgage rates. Rates have been bouncing around lately, so if you’re actively shopping, stay in close contact with your lender. Timing your lock can make a meaningful difference in your rate.

Ready to Take the Next Step?

Whether you’re buying your first home in Washington State, refinancing, or exploring your options, I’m here to help you navigate the process with confidence.

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