How the Iran War Is Driving a Spike in Mortgage Rates Above 6.22% — And What Comes Next

Geopolitical tensions from the Iran situation are driving up mortgage rates above 6.22%, potentially increasing borrowing costs for consumers and dampening demand in the housing market. This could lead to broader economic impacts, such as reduced consumer spending and slower growth in interest-rate sensitive sectors, though markets may have already partially priced in ongoing Middle East risks. Higher rates might benefit lenders in the short term but pose challenges for borrowers amid existing inflationary pressures.