US mortgage rates climbed this week, with the average 30-year fixed rate hitting 6.11%, as investor concerns over the economic impact of President Trump's conflict with Iran threaten housing affordability and the upcoming spring homebuying season.
The average rate for a 30-year fixed mortgage surged to 6.11% in the week ending March 12, marking the biggest weekly increase since April. This rise is attributed to a sharp increase in the 10-year US Treasury note yield, which mortgage rates follow, as investors fret over the economic fallout from President Trump's recent attacks on Iran. This development reverses recent progress where rates had briefly dipped below 6%, a key psychological threshold for homebuyers. Experts warn that a prolonged conflict in the Middle East could push oil prices higher, revive inflation concerns, and make it difficult for the Federal Reserve to implement anticipated rate cuts, further escalating mortgage rates. This uncertainty casts a significant shadow over the crucial spring home shopping season, potentially stalling home sales and making homeownership less accessible, especially for first-time buyers.
