Iran War Drives Up Mortgage Rates. Here’s How to Secure Lower Rates Mortgage rates have risen again as the war in Iran intensifies, reversing a recent decline that had brought rates below 6% for the first time in four years. Economists warn that rates could continue to fluctuate throughout 2026 if the conflict persists, though they remain significantly lower than they were a year ago. Homebuyers are advised to adopt strategic approaches to secure favorable borrowing costs amid the uncertainty. The connection between mortgage rates and oil prices has become more pronounced since the war began on February 28. As oil prices surged, so did mortgage rates and the 10-year Treasury yield. On March 9, oil prices reached a peak of $119.48 per barrel, while the 10-year Treasury yield climbed from 3.96% to 4.21% between February 27 and March 11. Average mortgage rates followed a similar trend, rising from 5.99% to 6.19% during the same period. Experts note that while the war has disrupted global oil markets, the long-term impact on mortgage rates may be less severe than in 2008, when U.S.-Iraq tensions caused oil prices to spike. At that time, mortgage rates rose from 5.91% to 6.48% over the course of the year. However, the U.S. has since reduced its reliance on foreign oil, with imports dropping by 35% since 2008. Despite this, the war could still strain global supply chains and inflation, according to analysts. The relationship between oil prices and mortgage rates is rooted in economic dynamics. Higher oil costs increase production and transportation expenses, which are passed on to consumers. This often leads to inflation, prompting investors to demand higher returns on bonds and mortgages.#iran_war #oil_prices #mortgage_rates #10_year_treasury_yield #redfin
30-Year Fixed Mortgage Rate Drops Steeply by 63 Basis Points The average 30-year fixed mortgage rate has experienced a sharp decline, falling by 63 basis points to 6%. This marks the lowest level since 2022 and represents a significant shift for homeowners and potential buyers. The drop offers substantial savings over the life of a loan, potentially freeing up tens of thousands of dollars in interest payments. A 63-basis-point decrease translates to a 0.63% reduction in the rate. For context, one basis point equals 0.01%, so this change is not minor. For borrowers with large loans, such as $300,000, the impact is considerable. Over a 30-year term, a 0.63% difference in interest rates can result in thousands of dollars in savings. This could be redirected toward down payments, home improvements, or personal savings. The data comes from Freddie Mac’s latest Primary Mortgage Market Survey, released on March 5, 2026. The average rate now stands at 6%, down from 6.63% at the same time last year. While there was a slight increase of 2 basis points from the previous week, the annual decline remains significant. The broader trend of falling rates continues to benefit borrowers. To illustrate the savings, consider a $300,000 loan. A 0.63% reduction in the rate could save approximately $2,000 annually. Over 30 years, this adds up to tens of thousands of dollars in total savings. These figures highlight the tangible impact of rate changes on homeowners’ finances. The drop in rates is influenced by a combination of economic factors. While global events, such as Middle East tensions, have caused short-term volatility and increased 10-year Treasury yields, the overall trend remains favorable.#housing_market #middle_east #freddie_mac #mortgage_rates #sam_khater
