Trending Now - Mortgage Rates Climb to 6% Amid Ongoing Iran Conflict

WHO:

President Trump

Israel

Freddie Mac

Kara Ng, Zillow senior economist

Kate Wood, lending expert at NerdWallet

Patrick De Haan, petroleum expert at GasBuddy

National Association of Realtors (NAR)

WHAT:

The average 30-year fixed mortgage rate rose to 6% for the week ending March 5, 2026.

The mortgage rate increased from 5.98% the previous week.

The yield on the 10-year Treasury climbed to 4.14% on March 5, 2026, up from around 4% the previous week.

Home sales fell 8.4% in January 2026.

The median existing home sales price rose for the 31st consecutive month in January 2026.

U.S. gasoline prices increased by 26 cents a gallon since the previous week, reaching an average of $3.25 per gallon.

WHERE:

United States

Strait of Hormuz

WHEN:

March 5, 2026: Mortgage rates hit 6%.

February 27, 2026: The day before U.S. and Israel began military operations against Iran.

January 2026: Home sales data reported.

April 2025: The last time U.S. gasoline prices were at $3.25 per gallon.

WHY:

The increase in mortgage rates is attributed to rising bond yields following military strikes in Iran and a spike in oil prices.

The war with Iran has caused concerns about inflation, impacting bond market dynamics.

HOW:

Mortgage rates are influenced by the yield on the 10-year Treasury, which is affected by bond market investors' expectations for the economy and inflation.

The conflict in Iran has disrupted oil supplies, leading to higher oil prices and inflationary pressures.

This week, the average 30-year fixed mortgage rate rose to 6%, up from 5.98% the previous week, as the yield on the 10-year Treasury climbed to 4.14% amid rising inflation concerns linked to the ongoing conflict in Iran. In January, home sales dropped by 8.4%, while the median existing home sales price continued to rise for the 31st consecutive month. Additionally, U.S. gasoline prices surged by 26 cents a gallon since last week, now averaging $3.25, marking the first time prices have reached this level since April 2025.