Mortgage Rates Reach Nearly Year-Long High Amid Escalating Iran Conflict
The average U.S. 30-year fixed mortgage rate climbed to 6.85% on July 23, 2026 — the highest level in nearly a year and up from 6.68% at the start of the previous week. The increase is attributed to rising Treasury yields driven by ongoing geopolitical tensions between U.S.-allied forces and Iran following the collapse of a short-lived ceasefire. The conflict, which began with large-scale strikes on February 28, caused significant disruptions in oil markets. Brent crude prices surged from $69 per barrel to over $87 within weeks due to supply concerns around the Strait of Hormuz — an area through which about 20% of global oil trade flows. The International Energy Agency described this as one of the largest supply shocks in history. Zillow (NASDAQ: Z) revised its home sales growth forecast for 2026 from a projected increase to a potential decline, citing elevated mortgage rates and economic uncertainty.
Topics: mortgage rates oil prices U.S.-Iran conflict Zillow forecast