US Mortgage Rates Climb to 6.22% Amid Concerns Over Conflict With Iran
Margaret Hills
Published Sep 18, 2026
Mortgage rates in the United States have reached their highest point in three months, driven by economic uncertainty surrounding the recent U.S. attacks on Iran.
This rise in borrowing costs is creating new challenges for the housing market just as the busy spring buying season begins.
The Current Numbers
According to Freddie Mac, the average interest rate for a 30-year fixed mortgage rose to 6.22% this week, up from 6.11% the week before.
While this is still lower than the 6.67% seen in previous months, the sudden increase is discouraging for many potential homebuyers.
Why Are Rates Going Up?
The primary driver behind this increase is the war in the Middle East, which began in late February. The conflict has disrupted the global energy supply, leading to:
- Higher Oil Prices: Reduced energy supplies are driving up costs.
- Inflation Fears: Higher energy prices usually lead to general price increases across the economy.
- Treasury Yields: Mortgage rates often follow the "10-year Treasury note." Because of the war’s uncertainty, this yield has jumped from 3.96% to 4.26%. When these bond yields go up, mortgage rates almost always follow.\
Impact on Homebuyers
The rising costs are already having a visible effect on the market:
- Fewer Applications: The number of people applying for mortgages dropped by nearly 11% last week.
- Lower Sales: New home sales fell by 18% in January compared to the previous month. Compared to the same time last year, sales are down more than 11%.
What is the Federal Reserve Doing?
The Federal Reserve, which influences the general cost of credit, decided to keep its own interest rates unchanged this week. Officials are currently waiting to see how the conflict with Iran will affect the economy long-term.
However, the Fed did signal that it might cut interest rates at least once later this year, which could eventually provide some relief to the housing market.
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