The US 30-year mortgage rate reached 6.22%, the highest since December 11, as inflation concerns and the Iran conflict drove up Treasury yields. Freddie Mac reported the increase, with rates rising from 6.11% last week. This marks a shift after a brief dip below 6% in late February, signaling renewed market volatility.

Homebuyers face delayed spring purchasing as sellers hesitate and buyers reassess affordability. The National Association of Realtors noted a February rebound in resale contracts after two declines, but the Iran crisis has introduced uncertainty. Purchasing power remains better than last year’s 6.67% average, yet affordability challenges persist.

The Federal Reserve kept rates steady, citing energy-driven inflation, while bond traders no longer expect rate cuts. This aligns with broader economic uncertainty, where geopolitical tensions and monetary policy intersect to shape housing demand.

Economists like Lisa Sturtevant from Bright MLS emphasize the conflict’s impact, stating it’s ‘delaying the spring homebuying season.’ With sellers holding back and buyers cautious, the market’s trajectory remains unclear, hinging on geopolitical and financial developments.