Mortgage Rates Hit Three-Month High as Iran War Rattles Spring Housing Market

Mortgage rates in the U.S. jumped to a three-month high this week, adding strain to the housing market as the spring buying season begins. The 30-year fixed mortgage rate rose to 6.22% for the week ending March 19, up from 6.11% the previous week, according to Freddie Mac. War Abroad Is Pushing Borrowing Costs Higher The increase follows the outbreak of the Iran conflict, which has tightened global energy supplies and lifted oil prices, fueling inflation expectations. The 10-year Treasury yield, which influences mortgage rates, rose to 4.26% from 3.96% before the conflict. Mortgage applications fell nearly 11% from the prior week. New single-family home sales dropped nearly 18% in January from the previous month and were down 11.3% from a year earlier, according to the Census Bureau. The Federal Reserve kept interest rates at 3.5%–3.75%, noting that “the implications of developments in the Middle East for the U.S. economy are uncertain.” Trump Signs Order To Loosen Mortgage Rules Meanwhile, President Donald Trump signed an executive order last week aimed at easing mortgage regulations, particularly for smaller banks, and reducing compliance burdens. The order encourages digital modernization of home-buying, including electronic signatures, e-notes, and AI-based appraisals. The administration said its $200 billion in mortgage-backed securities purchases has lowered costs for homebuyers by $5,000. Who Wins And Who Loses On Wall Street In pre-market trading on Friday, shares of Rocket Companies (NYSE:RKT) were down 0.68% at $14.55, DocuSign (NASDAQ:DOCU) fell 0.23% to $47.64 (-0.23%), Zions Bancorp (NASDAQ:ZION) dropped 0.52% to $54, while D.R. Horton (NYSE:DHI) was slightly up at $137.70, and Zillow Group (NASDAQ:Z) dropped 1.51% to $45.57. Opendoor Technologies (NASDAQ:OPEN) fell 4.14% to $5.33 on Wednesday, as investors weighed rising mortgage rates against a potentially favorable regulatory backdrop. Higher borrowing costs are reducing incentives for homeowners to refinance or move, which in turn affects Opendoor's housing turnover and transaction volumes. Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock