Answers by John Yasko

Mortgage rates had actually been improving and briefly dipped below 6% average for the first time since 2022, but the conflict in Iran has pushed oil prices higher, which raises inflation concerns and caused bond yields, and mortgage rates, to rise slightly again, now just above 6%. The increase is small at this point in time and won’t dramatically change affordability for most buyers, but crossing the 6% mark can feel psychologically significant. If the conflict is short, the impact on housing will likely be temporary and simply delay some spring buyers. But if the war drags on and keeps energy prices elevated, mortgage rates could stay higher longer and slow the market a bit. It would be a positive for the market if the war goes on longer, that tankers with oil can move freely through the Strait of Hormuz. In my marketplace, clients are buying. If rates come down in the future, you can refinance your loan. Stay tuned.