<p class="wp-block-paragraph"><a href="https://www.washingtonexaminer.com/tag/mortgage-rates/" rel="noopener noreferrer" target="_blank">Mortgage rates</a> in the United States have surpassed 7% for the first time in nearly two years, as the housing market continues to be affected by the ongoing <a href="https://www.washingtonexaminer.com/tag/iran/" rel="noopener noreferrer" target="_blank">Iran</a> war.</p>
<p class="wp-block-paragraph">The average 30-year mortgage rate rose from 6.3% to 7.03% over the past year, according to data released by mortgage-loan company <a href="https://www.washingtonexaminer.com/tag/freddie-mac/" rel="noopener noreferrer" target="_blank">Freddie Mac</a> on Thursday. This marks the first time that the average mortgage rate has exceeded 7% since January 2025.</p>
<p class="wp-block-paragraph">The rate was below 6% in late February but began to rise again following the U.S. military engagement in Iran.</p>
<p class="wp-block-paragraph">Increasing fuel prices due to the conflict in the Middle East are contributing to higher mortgage rates by driving up 10-year Treasury yields amid rising inflation.</p>
<p class="wp-block-paragraph">The newly reported mortgage rate is the highest seen during either of President <a href="https://www.washingtonexaminer.com/tag/donald-trump/" rel="noopener noreferrer" target="_blank">Donald Trump’s</a> two terms. The average 30-year rate reached 7.04% four days before Trump took office last year. Three days after his second inauguration, the rate slightly decreased to 6.96% and continued to decline thereafter.</p>
<p class="wp-block-paragraph">The impact of the Iran war is cited as a key factor in this significant increase.</p>
<p class="wp-block-paragraph">The situation is raising concerns among experts in economics and real estate, particularly in an already struggling housing market.</p>
<p class="wp-block-paragraph">“For buyers and sellers, the highest mortgage rates in more than a year and a half are landing on a market that is in the midst of a slowdown,” stated Anthony Smith, a senior economist at Realtor.com, in an article prior to the release of Thursday’s data. “Existing home sales hit their 2026 low in August and pending sales have turned negative year over year. A 7% handle is as much psychological as mathematical, and it arrives at the point in the season when leverage usually shifts toward buyers.”</p>