Geopolitical Conflict Pushes U.S. Mortgage Rates Above Six Percent
New York, Thursday, 12 March 2026.
Sparked by the Iran conflict and surging oil prices, U.S. mortgage rates have jumped to 6.11%, abruptly ending a brief dip and threatening to cool domestic housing demand.
The Ripple Effect of Global Conflict
According to the Primary Mortgage Market Survey released by Freddie Mac on March 12, 2026, the average rate for a 30-year fixed-rate mortgage has climbed to 6.11% [1]. This marks a notable reversal from the end of February 2026, when rates briefly dipped below the 6% threshold after a four-year wait [2]. The catalyst for this sudden tightening of borrowing costs is the outbreak of war in Iran on February 28, 2026 [2]. As geopolitical tensions escalated, the price of oil surged alongside the conflict, reaching a high of $119.48 per barrel by March 9, 2026 [2].