Oil Price Surge From Iran Conflict Drives U.S. Mortgage Rates Higher

Mortgage rates are rising again and the timing is raising new concerns across the housing market.

The average 30-year rate hit 6.38%, marking four straight weekly increases just weeks after dipping below 6%, according to Freddie Mac data reported by MarketWatch and AP News. The reversal is being tied directly to inflation fears triggered by the escalating Iran war.

According to Axios and Reuters, oil prices and Treasury yields have surged alongside the conflict, pushing borrowing costs higher and weakening expectations for Federal Reserve rate cuts. That shift is already hitting buyers, with mortgage applications and refinancing activity declining.

The tension is whether this is a temporary spike or the start of a longer affordability squeeze.

Rates remain below 2023 highs, but experts warn prolonged conflict could keep inflation elevated and delay relief. For now, the housing market is facing renewed pressure just as the spring buying season begins.

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