- Mortgage rates rose for the fifth week, reaching 6.46%, according to Freddie Mac.
- Rates have substantially increased since the U.S.-Israel war in Iran began, spiking oil prices and inflation.
- Higher rates and home prices have led to increased monthly payments and canceled agreements.
SALT LAKE CITY — Mortgage rates were up again for the fifth straight week.
The average rate for a 30-year, fixed-rate mortgage in the United States hit 6.46% for the week that ended Thursday, according to the Federal Home Loan Mortgage Corporation, that's better known as Freddie Mac. That rate was at 6.38% a week ago.
The rise in rates, now at the highest level since last September, started after the U.S. and Israel launched a war in Iran at the end of February that's driven up oil prices and fueled inflation fears.
Before the war began, rates had dropped below 6% for the first time since 2022. President Donald Trump has yet to make clear when the conflict will end, saying in a speech to the nation Wednesday night that attacks would continue.
"Higher mortgage rates have undone about a third of this year's affordability gains," Karen Ng, a senior economist for Zillow, posted Wednesday. She said the window is getting smaller for the housing market to catch up, given most activity is typically between March and October.
At some point, home shoppers may decide to just wait, Ng said, similar to what happened in 2025. Last year, polls showed economic uncertainty over the impacts of Trump's tariffs were causing many people to postpone big purchases.
Realtor.com senior economic research analyst Hannah Jones made a similar prediction.
"This fast-changing mortgage math, combined with general economic uncertainty, could keep more buyers on the sidelines as the typically-busy spring market gets into full swing," Jones said in a post Thursday.
She said homebuyers are now facing a monthly payment that's about $100 more than it would have been when rates were below 6%, assuming a 10% down payment on the March median-priced home.
A new analysis from the online brokerage Redfin found that the median monthly mortgage payment has gone up for the first time in nearly six months, to $2,742, a 0.4% boost year over year.
The increase is a result of higher mortgage rates as well as higher home prices. Redfin said the median home-sale price just saw "the biggest uptick in a year," jumping 2.1% from a year earlier during the four weeks ending March 29.
At the same time, home purchase agreements are being canceled at a record rate. According to Redfin, more than 42,000 such agreements in the U.S. fell through in February, equal to 13.7% of the homes that went under contract that month, a new high.
