Iran War Boosts Mortgage Rates, Slows Home Sales

0:00The war with Iran is spiking mortgage rates and messing with the spring home buying rush. Just last week of February, the average 30-year fixed rate dipped under 6 percent, the lowest in over 3.5 years. Now it's jumped to 6.46 percent, the highest in nearly 7 months, thanks to economic jitters from the conflict. Meanwhile, even though rates are still lower than a year ago, the quick climb is already slowing mortgage applications and adding uncertainty, especially with the job market cooling off. Experts say this could kill momentum during the peak season when folks usually scramble for houses. Buyers who can swing it are finding a sweeter market, with more homes listed up nearly 8 percent nationwide from last year, and prices dropping in. Over half the top metro areas, like Austin and Los Angeles, sellers are sitting on properties longer, giving shoppers room to haggle for lower prices or concessions on repairs and closing costs. In places like Dallas and Kansas City, inventory is swelling, forcing owners to cut asking prices, or sweetened deals just to move inventory.

1:05Sales have been flat at 30-year lows since rates started rising in 2022, and affordability stays brutal with median homes at nearly $400,000 against lagging wages. If you got the cash flow, lock in now before more chaos hits, but this Iran fallout means plenty of folks might just wait it out as the market tilts. Even more, toward buyers hanging tight. This has been Canada News Today, powered by AI. I'm Corey with The Story.