Mortgage rates hit their highest level in a year, driven by war and inflation concerns
Average 30-year fixed mortgage rates have risen to 6.66%, the highest level in a year. This increase is largely attributed to rising oil prices caused by ongoing conflict in Iran, which has impacted broader economic inflation and Treasury yields.
Why it matters
Rising mortgage rates significantly reduce housing affordability, potentially cooling the real estate market and impacting the financial stability of prospective homebuyers.
The average 30-year fixed-rate mortgage hit 6.66% this week, according to the Federal Home Loan Mortgage Corp., commonly known as Freddie Mac.
That's the highest it's reached in a year — at the end of last July, the average rate was 6.72%. The biblically ominous 6.66% figure could strike fear into homebuyers because it's a sign that home ownership is becoming less affordable.
Business More Americans are going bankrupt. What does that mean? Cost of Living Housing prices are causing some people to have smaller families than planned Last summer, rates were falling, and the decline continued into early 2026. Rates even dipped below 6% in February, raising hopes that this would unlock a tepid housing market, in which home seekers have been reluctant to buy and homeowners have been loath to give up lower pandemic-era rates.
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