Geopolitical tensions are affecting America’s housing market, adding to the financial strain on homebuyers. The average rate on a 30-year fixed mortgage has climbed to 6.55%, its highest level in nearly a year, after renewed strikes in Iran rattled financial markets.
Housing Market Impact
The increase in mortgage rates is keeping would-be buyers out of the market. Pending home sales in June fell by 5.4% month-over-month and by 0.3% since last year, according to a report from the National Association of Realtors. Mortgage applications also fell 7% last week and were 2% lower than last year, according to data from the Mortgage Bankers Association.
Mortgage rates tend to track the 10-year Treasury yield, which was volatile late last week and early this week as the US renewed strikes on Iran. Despite recent economic disruptions, Zillow still expects mortgage rates to drift lower, albeit not by much, to 6.4% by the end of 2026.
Original reporting: El Paso News (HLL/CB) — read the source article.
