Real Estate with Mr. G

Article from HousingWire, March 26, 2026

Concise summary

• Mortgage rates have increased to 6.62%, closer to 7% than 6%, due to the escalation of the conflict in Iran.
• The rise in mortgage rates is affecting the housing market, which had shown positive demand before the war, with purchase application data and pending home sales experiencing growth.
• The conflict’s impact on mortgage rates and the housing market is uncertain, with the potential for rates to rise further, and will be discussed further by the author and Editor in Chief Sarah Wheeler.

Detailed summary

• The current mortgage rates have increased significantly, now closer to 7% than 6%, due to the escalation of the conflict in Iran, with rates hitting 6.62% according to Mortgage News Daily, which is a substantial move that may impact the housing market.
• At the beginning of the year, the housing market had a favorable backdrop for growth, with a softer labor market, better mortgage spreads, and several rate cuts in the system, but the conflict in Iran has led to a rapid increase in mortgage rates.
• The 10-year yield has also increased, and oil prices have risen, following an update on the conflict from President Trump, which did not suggest a quick resolution, and this has resulted in higher mortgage rates.
• Housing demand was strong before the war, with multi-year highs in purchase applications and pending home sales, but the recent increase in mortgage rates has led to a decline in demand, with week-to-week data declining 5% and year-over-year growth slowing from 12% to 5%.
• The rapid change in mortgage rates has made it challenging for those in the mortgage and real estate industries to lock rates and get people into homes, and there is a risk that rates could increase further if the conflict escalates, with some legroom to reach a peak forecast of 4.60% on the 10-year yield.
• The Editor in Chief, Sarah Wheeler, and the author will discuss the best and worst outcomes for housing in 2026 due to the escalating conflict on an upcoming podcast, providing further analysis and insights into the potential impact of the conflict on the housing market.

Read entire article at: Mortgage rates now closer to 7% than 6% as the Iran war escalates