Mortgage Interest Rates Today: Rates Surge to 6.22% as Iran War Fuels Inflation Fears

Mortgage rates jumped Thursday to their highest level in more than three months, over escalating geopolitical instability and renewed inflation fears, fueled by the ongoing war in Iran driving up oil prices. 

The average rate on 30-year fixed home loans climbed to 6.22% for the week ending March 19, up 11 basis points from 6.11% the week before, according to Freddie Mac. For perspective, rates averaged 6.67% during the same period in 2025.

"​​The 30-year fixed-rate mortgage edged up this week to 6.22% but remains nearly half a percentage point lower than the same time last year," said Sam Khater, Freddie Mac's chief economist. "Potential homebuyers are poised for a more affordable spring homebuying season than last with the market experiencing improvements in purchase applications and pending home sales."

Financial markets continued to be roiled by volatility related to the conflict in the Middle East, which saw Iran launch retaliatory attacks against energy targets across the Gulf region, including the massive liquified natural gas hub of Ras Laffan in Qatar on Wednesday.    

By Thursday morning, Brent crude, the key benchmark for oil pricing, hit $115 per barrel, before edging down.   

"Rising energy prices and renewed trade uncertainty have lifted inflation expectations, putting upward pressure on longer-term interest rates and, in turn, mortgage rates," explains Realtor.com® senior economist Anthony Smith.

The interest rates' continued upward trajectory comes despite softer recent economic data, including moderating inflation at 2.4% and weaker–than-expected February job growth, which would typically support lower borrowing costs. 

Given the murky outlook, policymakers at the Federal Reserve voted to leave interest rates unchanged at a range of 3.5% to 3.75% percent during the latest meeting of the Federal Open Market Committee (FOMC) on Wednesday.

For homebuyers, Smith says it is important to remember that even with the recent increases, mortgage rates remain below last year's levels, offering some improvement in purchasing power compared to spring 2025. 

"This is particularly meaningful in regions like the South and West, where inventory has rebounded more significantly and buyers are beginning to regain leverage as more options become available," he says. 

Nationally, active listings are up 7.9% year over year, reinforcing a gradual shift toward more balanced market conditions. 

February pending home sales rose 1.8% month over month as buyers took advantage of a brief dip in rates below 6%, but Smith warns that this early momentum could be at risk if the recent run-up in rates persists into mid-spring.

"The return of market volatility poses a clear risk to the fragile progress seen earlier this year," says the economist. 

As rates approached multiyear lows during the first three months of 2026, buyer interest began to revive, but Smith stresses that sustained momentum depends on more than just borrowing costs. 

"Elevated uncertainty could once again sideline both buyers and sellers, echoing the hesitant market conditions seen last year," he adds. "For the spring season to gain traction, households will need greater confidence in the economic outlook alongside improved affordability."

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to increase. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates to fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

How your credit score affects your mortgage

Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.

The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.

Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates.

Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. They want to make sure you're able to pay back the loan.