U.S. mortgage rates have reached a three-month high, climbing to 6.22% for a 30-year fixed mortgage in the week ending March 19, according to Freddie Mac. This increase from 6.11% the previous week is attributed to inflation fears spurred by the war in Iran. Despite remaining below last year's 6.67%, the rise presents a challenge for prospective homebuyers entering the spring buying season. Realtor.com senior economist Anthony Smith stated that "Elevated uncertainty could once again sideline both buyers and sellers, echoing the hesitant market conditions seen last year."
Mortgage applications experienced a nearly 11% drop last week compared to the previous week, according to the Mortgage Bankers Association. New Census Bureau data indicates that sales of new single-family homes decreased by almost 18% in January from the previous month, reflecting an 11.3% decline from January 2025. The 10-year Treasury yield, a benchmark for mortgage rates, reached 4.26% on Thursday, up from 3.96% before the war began.
The conflict in the Middle East has disrupted global energy supplies, causing oil prices to rise and injecting uncertainty into financial markets.
Defense Secretary Pete Hegseth defended the Pentagon's $200 billion funding request for the war against Iran, stating that "it takes money to kill bad guys." Senator Roger Marshall (R-Kan.) called the $200 billion figure "a little tall."
Commercial satellite companies, including Planet Labs, are restricting access to images of Iran and the Middle East. Planet Labs cited "genuine concerns of use of Planet data over Iran" and is delaying the release of all new imagery of Iran, the Persian Gulf, U.S.-allied bases, and "existing conflict zones" for 14 days. Vantor, formerly called Maxar, has controls in place on imagery from parts of the Middle East, limiting who can request new images or purchase historical imagery.
The war in Iran has led to a "situational pause" in peace talks between Russia and the Trump administration regarding the Russia-Ukraine war, according to Kremlin spokesperson Dmitry Peskov. Italy is in talks with Algeria to buy more natural gas, as the Iran war squeezes energy shipments globally.
With rising mortgage rates and economic uncertainty, the Federal Reserve is assessing the impact of the Iran war, while also signaling that it could move to lower rates at least once this year.
U.S. mortgage rates have reached a three-month high, climbing to 6.22% for a 30-year fixed mortgage in the week ending March 19, according to Freddie Mac. This increase from 6.11% the previous week is attributed to inflation fears spurred by the war in Iran. Despite remaining below last year's 6.67%, the rise presents a challenge for prospective homebuyers entering the spring buying season. Realtor.com senior economist Anthony Smith stated that "Elevated uncertainty could once again sideline both buyers and sellers, echoing the hesitant market conditions seen last year."
Mortgage applications experienced a nearly 11% drop last week compared to the previous week, according to the Mortgage Bankers Association. New Census Bureau data indicates that sales of new single-family homes decreased by almost 18% in January from the previous month, reflecting an 11.3% decline from January 2025. The 10-year Treasury yield, a benchmark for mortgage rates, reached 4.26% on Thursday, up from 3.96% before the war began.
The conflict in the Middle East has disrupted global energy supplies, causing oil prices to rise and injecting uncertainty into financial markets. The closure of the Strait of Hormuz, a key route for fertilizer production and transportation, has increased costs for U.S. farmers. Europe's benchmark natural gas price, the Dutch TTF, climbed above €70 per megawatt hour, a level unseen since December 2022.
Defense Secretary Pete Hegseth defended the Pentagon’s $200 billion funding request for the war against Iran, stating that "it takes money to kill bad guys." Senator Roger Marshall (R-Kan.) called the $200 billion figure "a little tall." The Pentagon is seeking more money to accelerate production of weapons systems the U.S. and Israel have expended during the war.
Commercial satellite companies, including Planet Labs, are restricting access to images of Iran and the Middle East. Planet Labs cited "genuine concerns of use of Planet data over Iran" and is delaying the release of all new imagery of Iran, the Persian Gulf, U.S.-allied bases, and "existing conflict zones" for 14 days. Vantor, formerly called Maxar, has controls in place on imagery from parts of the Middle East, limiting who can request new images or purchase historical imagery.
The war in Iran has led to a "situational pause" in peace talks between Russia and the Trump administration regarding the Russia-Ukraine war, according to Kremlin spokesperson Dmitry Peskov. Italy is in talks with Algeria to buy more natural gas. Switzerland will temporarily stop exports linked to any new U.S. arms and ammunition orders.
With rising mortgage rates and economic uncertainty, the Federal Reserve is assessing the impact of the Iran war, while also signaling that it could move to lower rates at least once this year.
Highlighted text was flagged by the council. Tap to see feedback.
For example, Planet Labs stated it would delay the release of new imagery for 14 days due to concerns about the potential tactical use of its data.