US mortgage rates jumped for a fourth straight week, reaching the highest point in six months and dampening prospects for the crucial spring season as the Iran war roils markets.
The average rate for 30-year, fixed loans climbed to 6.38%—the highest since September 2025 and up from 6.22% last week, according to data from Freddie Mac on Thursday. At the current 30-year average, borrowers with a $1 million loan would pay about $6,242 a month, not including insurance and taxes. That is up from $5,983 in late February when rates briefly dipped below 6% right before the Iran war began.
With the key spring selling season about to get underway, the spike in rates adds another reason for buyers to hesitate, compounding worries about everything from the high cost of gas and groceries to the prospect of AI taking their jobs. It’s too soon to know how the season will unfold, but the early read from home builders isn’t promising.
During a 24 March earnings call with analysts, KB Home lowered its full-year guidance for closings, citing the Iran war as a contributing factor.
“We saw pretty good sales results the first week of March,” Chief Executive Officer Robert McGibney said. “But the last couple of weeks have been a little softer than we would like to see or what we normally get this time of year.”
He added that the length of the conflict will determine consumer confidence, “but we feel that right now—it’s weighing on the consumer.”
To be sure, borrowing costs are still below the 6.65% average a year ago, but that gap is shrinking. Signs of a weak housing market were visible even before the conflict erupted almost a month ago. Home prices in February were little changed from January, the slowest monthly growth in seven months, according to seasonally adjusted data from brokerage Redfin.
The weak market could give some buyers negotiating power, as long as they have the income and fortitude to plow ahead, according to Redfin Principal Economist Sheharyar Bokhari.
“Homebuyers in many markets are having success asking for discounts and other concessions, and they have the luxury of time because they aren’t facing much competition,” Bokhari said.