Morning Business Report: Mortgage rates climb as oil prices rise amid renewed Iran fighting

The average rate on a 30-year fixed mortgage has climbed to 6.87% as rising oil prices put pressure on borrowing costs.

(LILAMAX) – The average rate on a 30-year fixed mortgage has climbed to 6.87% as rising oil prices put pressure on borrowing costs.

Mortgage rates had been expected to decline this year, but the war with Iran and the resulting increase in oil prices have disrupted those expectations. The day before the war began at the end of February, the average 30-year fixed mortgage rate stood at 5.99%.

Meanwhile, President Donald Trump has announced additional efforts aimed at lowering prescription drug costs for Americans.

Trump said nine additional pharmaceutical companies have committed to offering Americans their lowest drug prices. The administration projects its prescription drug initiatives will save Americans $600 billion.

A 2024 report found that prescription drug prices in the United States are, on average, nearly three times higher than prices in other countries.

Wall Street started September in the red Monday as investors reacted to renewed fighting involving Iran. The Dow Jones Industrial Average fell more than 300 points, although stocks still finished August with gains.

Trump is also speaking out in support of data center development as the issue becomes a growing point of debate in communities across the country.

The president said communities that reject data centers could become “poor and backwards.” Data center development has emerged as an issue in several midterm election races.

And Target is expanding its beauty business with the launch of Target Beauty Studio.

Beginning Sept. 10, the new prestige beauty destination will be available in more than 600 stores and online, featuring 90 prestige, emerging and global brands. Many of those brands will be available at Target for the first time.

The new beauty concept will replace Ulta Beauty locations inside Target stores after the companies ended their partnership earlier this year.