Mortgage Rates Rise to Highest Level Since June 2025 Amid Iran War Impact
The average rate for a 30-year fixed mortgage has climbed to 6.87%, the highest since June 2025, driven by rising oil prices due to renewed hostilities in the Iran war. Mortgage rates typically follow bond yields, which have increased amid geopolitical tensions and inflation expectations. Matthew Graham of Mortgage News Daily noted that while the rate increase is not sudden but gradual, it reflects ongoing economic pressures such as elevated bond issuance and resilient economic growth. The rise in mortgage rates has significant financial implications for homebuyers. For example, a $450,000 home with 20% down now costs about $2,363 per month in principal and interest—$207 more than at the end of February before tensions escalated. Higher financing costs are also reducing mortgage eligibility due to stricter debt-to-income ratios for lenders.
