Iran Conflict Fuels Oil Price Spike, Mortgage Rates Hit New Heights

The recent surge in oil prices due to the conflict with Iran has pushed mortgage rates higher, causing a ripple effect on homebuyers.

The 30-year fixed mortgage rate climbed by 6 basis points to 6.87%, its highest point since June 2025, according to Mortgage News Daily.

This represents a 12 basis point increase since Thursday and over 30 basis points in the past two months.

'While rates are technically at their highest level in more than a year,' said Matthew Graham, chief operating officer of Mortgage News Daily, 'they haven't exactly exploded with surprising, new momentum.'

The rate hike is attributed to inflation expectations, elevated bond issuance, and economic resilience, which can be subject to change.

As a result, borrowing costs have increased significantly. For example, on a $450,000 home with 20% down and a 30-year fixed loan, the monthly principal-and-interest outlay has risen by $207 compared to late February.