The average 30-year fixed-rate mortgage (FRM) increased by 8 basis points to 6.38% this week, rising for a fifth consecutive week and hitting the highest level since September 2025, according to Freddie Mac. Higher rates continue to hamper home-buying affordability for Americans, although homebuilding stocks, including D.R. Horton (DHI), Lennar (LEN), and PulteGroup (PHM), are trading slightly higher on the day.
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Mortgage Rates Jump as U.S.-Iran War Drags On
The 30-year FRM briefly dropped below 6% in February for the first time since 2022. However, rates rebounded following the closure of the Strait of Hormuz, which sent oil and gas prices surging. This has led to the risk of higher inflation, which in turn has pushed the 10-year Treasury yield higher. The 30-year FRM is closely linked to the 10-year yield.
The U.S.-Iran war has depressed consumer sentiment, while fears over AI leading to job losses have put potential buyers on edge. Analysts note that a quick resolution of the war could support the busy spring home-buying season, while an extended conflict could send mortgage rates even higher.