Average US long-term mortgage rate increases to 6.11%: report

WASHINGTON (TNND) — The average long-term U.S. mortgage rate went up to 6.11% this week as the conflict in Iran continues.

The mortgage rate was 6% last week, according to ABC News. Last year, the rate was around 6.65%.

Two weeks ago it was around 6% prior to the U.S. and Israel conducting drone strikes on Iran.

Mortgage rates are impacted by the Federal Reserve, inflation and the economy.

“Under normal circumstances, these soft economic readings would put downward pressure on mortgage rates, however, the news out of the Middle East is overriding those signals,” a senior economist at Realtor.com said.

The Federal Reserve could be prevented from cutting interest rates due to inflation and increased oil prices.

The U.S. housing market has been in a slump since 2022.

President Donald Trump said earlier this year that he wanted to invest $200 billion to lower mortgage rates.

“It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed,” Trump posted on social media.

“We are bringing back the AMERICAN DREAM that was destroyed by the last Administration.”

He also criticized President Joe Biden for ignoring the housing crisis.

“Everything was broken, but I, as President of the United States, have already fixed it!” he said. “Now, I am giving special attention to the Housing Market. Because I chose not to sell Fannie Mae and Freddie Mac in my First Term, a truly great decision, and against the advice of the “experts,” it is now worth many times that amount — AN ABSOLUTE FORTUNE — and has $200 BILLION DOLLARS IN CASH.”