Mortgage rates surge to highest since September
In an aerial view, two-story single-family homes line the streets of a neighborhood 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 due to the war in Iran.
The average rate on a 30-year fixed loan reached 6.41%, according to Mortgage News Daily. Although this is the highest rate since the first week of September, it is still below the rate of 6.78% in the same period last year.
Mortgage rates loosely track the yield on the 10-year U.S. Treasury note, which rose again on Friday.
“This is counterintuitive to those who expect bonds to serve as a safe haven in times of uncertainty, but when the war has a direct impact on inflation expectations, it would be more than enough to offset the safe-haven benefits that might otherwise be seen,” wrote Matthew Graham, chief operating officer of Mortgage News Daily.
Mortgage demand from homebuyers has increased even as rates started rising last week, according to the Mortgage Bankers Association, but this week’s new increase could negatively impact the spring season, which has already been affected by other major headwinds.
Lennar, One of the nation’s largest homebuilders reported disappointing earnings in the first quarter. Chief executive Stuart Miller described the headwinds in the broader market as “high mortgage rates, constrained affordability, cautious consumer sentiment and geopolitical uncertainty, particularly including the recent conflict in Iran”.
Just two weeks ago rates fell to multi-year lows, briefly touching 5.99%. Now the savings from these lower rates are gone.
The monthly payment for someone buying a $400,000 home, near the national average for a 20% discount on a 30-year fixed mortgage, is now about $115 more than it was two weeks ago.
