Iran war hits housing market as mortgage rates rise to 6%
#Iran #war #housing market #mortgage rates #economic impact #borrowing costs #financial instability
📌 Key Takeaways
- Mortgage rates in Iran have increased to 6% due to the ongoing war.
- The conflict is negatively impacting the country's housing market.
- Higher borrowing costs are making home purchases less affordable.
- Economic instability from the war is driving financial market changes.
Mortgage rates are rising as bond investors fret that rising oil prices could boost inflation.
🏷️ Themes
War Impact, Housing Market
📚 Related People & Topics
Iran
Country in West Asia
# Iran **Iran**, officially the **Islamic Republic of Iran** and historically known as **Persia**, is a sovereign country situated in West Asia. It is a major regional power, ranking as the 17th-largest country in the world by both land area and population. Combining a rich historical legacy with a...
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Original Source
MoneyWatch Iran war hits housing market as mortgage rates rise to 6% on inflation fears By Mary Cunningham Mary Cunningham Reporter, MoneyWatch Mary Cunningham is a reporter for CBS MoneyWatch. She previously worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program. Read Full Bio Mary Cunningham March 5, 2026 / 4:49 PM EST / CBS News Add CBS News on Google Mortgage rates are edging up on Thursday amid renewed inflation fears tied to the war in Iran. The average national rate for a 30-year fixed-rate mortgage rose to 6%, up modestly from 5.98% last week, the lowest since September 2022 , according to new data from Freddie Mac. Home loan costs remain far lower than a year ago, when they topped 6.6%. Still, experts said even an incremental rise to 6% could deter some buyers. "Two hundredths of a percentage point is not making or breaking anyone's ability to buy a home," said Kate Wood, a lending expert at NerdWallet. "But psychologically… this feels huge." Inflation fears rattle bond market Mortgage rates tend to move in tandem with the bond market, particularly the 10-year Treasury note. But the Iran war is driving up global oil prices , fanning concerns about rising inflation in the U.S. In turn, that is boosting bond yields as investors demand higher returns. While bonds are normally considered a safe investment, Wood said investors are likely shifting money to even more stable assets like money market funds amid heightened economic uncertainty. Historically, fixed mortgage rates have run roughly one to two percentage points higher than Treasury yields, according to the Brookings Institution. The 10-year Treasury note reached 4.14% on Thursday afternoon, up from 3.96% on February 27, the day before the U.S. and Israel began military operations against Iran. Gas prices up 26 cents Oil prices have jumped as crude shipments passing through the strategically important Strait of Hormuz stall, creating shortfalls in global supply. Pa...
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