Mortgage rates are heading up again after falling below 6% for the first time since 2022.
The average 30-year fixed mortgage rate in the United States rose to 6% for the week ending Thursday, the Federal Home Loan Mortgage Corporation that’s better known as Freddie Mac reported.
Just a week earlier, that number had dropped to 5.98%, breaking what was seen as a “psychological barrier” that has been sidelining many would-be buyers and sellers since rates started climbing above pandemic-era lows. In early 2025, rates briefly jumped above 7%.
But last weekend, the U.S. and Israel launched a war against Iran that is spreading throughout the Middle East, affecting oil prices. The “oil shock” impact on inflation fears helped drive up the bond yields that mortgage rates are based on, according to Zillow senior economist Kara Ng.
The reversal is a setback, Ng said, but gains made in housing affordability are largely intact, including what Zillow reports as a $30,000 increase in buying power compared to this time last year due to falling rates and rising incomes.
That additional buying power means a median-income U.S. household can now “comfortably afford” a house priced at $331,483, assuming a 20% down payment, according to the popular real estate website’s analysis.
“Households that did not buy or refinance a home during the mortgage rate dip might have missed a flash sale, but can still buy at a discount,” she said in a Wednesday post, adding that the financial math hasn’t materially changed with the slight rate increase.
“If anything, it highlights the value of both preparedness and a carpe diem attitude of seizing the home when you find one that fits your needs and budget rather than trying to perfectly time the market,” Ng said.
In Utah, Zions Bank Mortgage Manager Jeremy Holmgren offered similar advice.
“We are seeing pressure from global markets affecting mortgage rates,” Holmgren told the Deseret News. “Increased uncertainty in the Middle East is creating concerns about inflation, which is pressuring interest rates across the board, including mortgage rates.”
But, he pointed out, “mortgage rates are holding fairly steady and at lower levels than their peak of 7% in 2025. When it comes to their mortgage, we encourage customers to think long-term. As I’ve said before, ‘Date the rate and marry the house.’”
It’s difficult to predict where rates will go in the current market, given all the outside pressures, Holmgren said. “We will definitely be keeping a close eye and encourage consumers to remain levelheaded and consult with a mortgage professional before making decisions.”