US Mortgage Rates Briefly Fall Below 6% Amid Middle East Tensions Freddie Mac reported that the average 30-year fixed mortgage rate was 6% for the week ending March 5, following the escalation of hostilities between the U.S. and Iran. The yield on the 10-year Treasury, which closely influences mortgage rates, has risen since President Donald Trump and Israel launched military strikes in Iran on Saturday. Typically, government bonds act as a safe haven during market turmoil, driving yields lower as investors seek security. However, this time, yields have moved in the opposite direction, reflecting heightened uncertainty. Mortgage rates dipped to 5.98% last week—the first time they’ve fallen below 6% since 2022—crossing a psychological threshold that some economists believe could help revive the stalled U.S. housing market. While the recent increase in rates was modest, a prolonged Middle East conflict could trigger a broader bond sell-off. Combined with sustained inflationary pressures from rising oil prices, this could disrupt the recent downward trend in mortgage rates. Despite the slight rise this week, mortgage rates remain significantly lower than at the start of 2025, when they briefly exceeded 7%. Many homeowners who locked in ultra-low borrowing costs during the pandemic have hesitated to sell, fearing higher rates. This reluctance has limited the supply of homes for sale and kept prices elevated. Experts suggest that rates starting with a “5” could ease the so-called lock-in effect, encouraging more sellers to enter the market. Zillow senior economist Kara Ng noted that mortgage rates briefly fell below 6% before an oil shock reversed the trend.#iran #donald_trump #freddie_mac #national_association_of_realtors #zillow
