Mortgage rates jump to highest level in more than 3 months as Iran war reignites inflation fears

The war in Iran is driving up the cost of buying a home in America.

The average 30-year fixed mortgage rate rose to 6.22% this week, up from 6.11% the week before. It’s the highest level since early December, reflecting the inflation fears rippling through markets.

Less than a month ago, rates had fallen below 6% for the first time in more than three years, a key psychological threshold that some experts believed could reignite home buying and selling ahead of the spring homebuying season.

But since then, the US-Israeli war on Iran, which began in late February, has sent energy prices skyrocketing.

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