Aerial view of two-story single-family homes lining a neighborhood street in Thousand Oaks, California, on January 13, 2026.
Kevin Carter | Getty Images
Mortgage rates rose to their highest level since September on Friday as bond yields rose in the wake of the Iran war.
The average interest rate on a 30-year fixed loan reached 6.41%, according to Mortgage News Daily. This is the highest level since the first week of September, but is still lower than the 6.78% rate for the same period last year.
Mortgage rates have roughly tracked the 10-year Treasury yield, which rose again on Friday.
“This is counterintuitive for those who expect bonds to act as a safe haven in times of uncertainty, but when war has a direct impact on inflation expectations, the safe haven benefits are more than offset by this,” said Matthew Graham, chief operating officer at Mortgage News Daily.
Demand for mortgages from homebuyers increased even as interest rates began rising last week, according to the Mortgage Bankers Association, but a new surge this week could put a damper on a spring season already facing other major headwinds.
lenner The company, one of the nation’s largest home builders, reported disappointing first-quarter profits. CEO Stuart Miller said headwinds for the broader market included “high mortgage rates, constrained affordability, cautious consumer sentiment and geopolitical uncertainty, particularly the recent conflict with Iran.”
Just two weeks ago, interest rates fell to multi-year lows, at one point hitting 5.99%. Now, all those savings from lower interest rates are gone.
For someone buying a $400,000 home near the national median price with a 20% reduction on a 30-year fixed mortgage, the monthly payment is now about $115 higher than it was two weeks ago.
