U.S. mortgage rates rose to 6.00% due to Middle East tensions, but remain near multi-year lows, supporting housing demand despite ongoing economic uncertainty.

After a brief decline below 6%, U.S. mortgage rates for the 30-year fixed loan increased to 6.00% due to growing tensions in the Middle East as a result of U.S.-Israel strikes on Iran. Concerns about inflation and economic instability were heightened by rising oil prices and rising Treasury yields, which went against the usual demand for safe havens. Despite the increase, rates are almost a full percentage point lower than they were a year ago and are still close to their lowest levels since late 2022, which supports increased affordability and an increase in refinance and purchase applications. Although home prices increased for the 31st consecutive month, buyer confidence is still cautious due to persistent geopolitical risks and economic uncertainty.