Iran Conflict Spikes Mortgage Rates, Stalling Spring Housing

Escalating tensions with Iran are driving up Treasury yields, which is pushing mortgage rates higher and complicating the typically active spring housing market. While buyers have entered the season with more negotiating leverage due to a limited supply of homes for sale, the swift rise in borrowing costs is creating a new headwind. The average rate on the 30-year fixed mortgage has climbed sharply in recent weeks, dampening purchasing power at a crucial time. This dynamic is forcing many prospective buyers to recalibrate their budgets or pause their search altogether. Real estate agents report that the initial spring momentum is being tempered by sticker shock over monthly payments, even as inventory remains tight. The conflict-driven rate environment is adding a layer of uncertainty to a market that was already characterized by high prices and low supply.