Buying a home just got more expensive as the Iran war drives up mortgage rates

Mortgage rates have climbed to their highest level in more than six months, according to Freddie Mac.

The average rate on a 30-year fixed mortgage rose to 6.38% for the week ending March 26, up from 5.98% before the conflict began.

That’s the highest level since early September, as growing fears of inflation ripple through the economy.

TRUMP PROMISED LOWER COSTS; THE IRAN CONFLICT NOW THREATENS THAT PLEDGE
Just weeks ago, rates had dipped below the key 6% mark for the first time in more than three years — a psychological breakthrough that experts hoped would spark a busy spring housing market.

Tit-for-tat strikes in Iran and across the Middle East, along with a sharp slowdown in oil tanker traffic through the Strait of Hormuz, have pushed crude above $100 a barrel for the first time since 2022, rattling global markets and renewing concerns about tighter energy supplies.

Rising energy costs are now stoking fears that inflation could heat up again.

THE UNLIKELY TOOL TRUMP IS EYEING TO TACKLE RISING OIL PRICES AMID THE IRAN CONFLICT
And it's not just housing.

As oil climbs, fuel prices are rising quickly — especially diesel, which tends to move faster due to its ties to freight and industrial demand.

As of April 1, AAA put the national average for regular gasoline at $4.06 a gallon, up $1.08 from a month earlier.

Diesel jumped to $5.04, up $1.73 over the same period.

MAPPED: WHERE GAS PRICES ARE RISING THE FASTEST FROM THE IRAN CONFLICT
"Gas prices could indeed fall, but are highly unlikely to go back to their pre-war levels for months, in part due to the amount of time needed for global inventories to build back," wrote Patrick De Haan, head of petroleum analysis at GasBuddy.

De Haan said seasonal factors are also working against drivers.

Demand typically rises heading into the summer months, while refinery maintenance and the switch to summer gasoline blends can further push prices higher.

With the midterm elections approaching, the rise in energy and housing costs could pose a challenge for President Donald Trump, who has pledged to make life more affordable for American families.