Mortgage Rates Hit 7% as Iran War Fallout Crushes a Weak Housing Market
Borrowers face an escalating housing market squeeze as average mortgage rates jump past 7%, driven by fallout from the Iran war. The 30-year fixed home loan rate climbs for the fifth consecutive week, reaching its highest level in more than two years. As borrowing costs soar toward 7.5%, the frozen housing market absorbs another heavy blow. Nearly 10% of borrowers choose riskier mortgages in an attempt to secure financing amid the elevated interest environment.
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- ✓ Mortgage rates climbed for the fifth straight week, pushing the average rate on a 30-year home loan above 7%.
- ✓ Nearly 10% of borrowers opted for riskier mortgages last week as rates soared over 7%.
- ✓ Mortgage rates reached their highest level in over two years.
- ✓ The 30-year fixed mortgage rate jumped sharply Thursday to 7.45%.
What changed
Average 30-year fixed mortgage rates surged past 7% and moved close to 7.5% following fallout from the Iran war.
Live updates
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Mortgage Rates Top 7% Amid Iran War Fallout
Borrowers face an escalating housing market squeeze as average mortgage rates jump past 7%, driven by fallout from the Iran war. The 30-year fixed home loan rate climbs for the fifth consecutive week, reaching its highest level in more than two years. As borrowing costs soar toward 7.5%, the frozen housing market absorbs another heavy blow. Nearly 10% of borrowers choose riskier mortgages in an attempt to secure financing amid the elevated interest environment.
Why it matters
The sudden spike in borrowing costs reflects broader economic pressures stemming from the ongoing conflict involving Iran. This escalation places further strain on prospective homebuyers already grappling with affordability challenges in a sluggish market. Financial analysts are closely monitoring how high these rates could climb as the geopolitical situation develops.
What is confirmed
- Mortgage rates climbed for the fifth straight week, pushing the average rate on a 30-year home loan above 7%.
- Nearly 10% of borrowers opted for riskier mortgages last week as rates soared over 7%.
- Mortgage rates reached their highest level in over two years.
- The 30-year fixed mortgage rate jumped sharply Thursday to 7.45%.
Still unconfirmed
- Mortgage rates could potentially climb as high as 9%.
What to watch next
- Whether mortgage rates will breach 7.5% or approach 9%
- Further economic impacts from the Iran war on the housing market
confidence 100%Sources used for this update (13)
- CNBC — Nearly 10% of borrowers opted for riskier mortgages last week, as rates soared over 7%
- The New York Times — Mortgage Rates Hit 7% as Iran War Fallout Crushes a Weak Housing Market
- Yahoo Finance — Mortgage rates are at their highest level in over two years: Mortgage and refinance interest rates today
- apnews.com — Mortgage rates climb for 5th straight week, pushing average rate on a 30-year home loan above 7%
- CNN — Mortgage rates top 7%, dealing a further blow to the frozen housing market | CNN Business
- NPR — Mortgage rates have just surpassed 7% for the first time in well over a year
- finance.yahoo.com — Mortgage rates surge to highest level in over two years: Mortgage and refinance interest rates today
- CBS News — Mortgage rates are back above 7%. How much higher could they climb?
- thehill.com — Benchmark mortgage rate tops 7 percent
- Barron's — How High Can Mortgage Rates go? How does 9% sound to you?
- Mortgage News Daily — Mortgage Rates Now Close to 7.5%
- CNBC — 30-year fixed mortgage rate jumps sharply Thursday to 7.45%
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