Mortgage rates rise for fourth straight week as Iran conflict impacts US housing market

Rising global tensions are now hitting home for American buyers, as mortgage rates climb for the fourth straight week—adding new pressure to an already strained housing market.

The average 30-year fixed mortgage rate has jumped to 6.38%, reaching its highest level in more than six months. The increase comes as economic uncertainty tied to the ongoing conflict involving Iran rattles global markets and pushes borrowing costs higher.

Mortgage rates are closely tied to the 10-year Treasury yield, which has surged amid concerns about inflation and instability overseas. As a result, what was expected to be a rebound year for housing in 2026 is now facing new headwinds.

For buyers, the impact is immediate. On a $450,000 home with a standard down payment, locking in a mortgage today could cost more than $1,100 extra per year compared to just a month ago—adding up to tens of thousands over the life of a loan.

The higher rates, combined with a cooling job market, are making buyers more cautious. Mortgage applications have dropped, and real estate agents say fewer buyers are entering bidding wars or rushing into purchases.

Still, there are signs of balance shifting. Inventory is rising, with significantly more sellers than buyers on the market—giving house hunters more negotiating power than in recent years.

Even so, uncertainty remains the biggest factor. Experts say if mortgage rates stabilize and economic conditions improve, pent-up demand could still drive a stronger spring housing season. Until then, buyers and sellers alike are navigating a market shaped as much by global conflict as local conditions.

Explore: NBCPalmSprings.com, where we are connecting the Valley.