Mortgage rates jump back above 6% as Iran strikes stoke fresh inflation fears

So long, 5.99%.

Mortgage rates jumped on Monday as the US-Israeli strikes on Iran sent oil prices surging, and Treasury yields rose amid fresh concerns about inflation.

The average 30-year mortgage rate jumped 13 basis points to 6.12%, according to Mortgage News Daily, pushing rates off 3.5-year lows.

In the long-term, mortgage rates are influenced largely by expectations about the health of the US economy, inflation trends, and investor demand for mortgage-backed securities. But geopolitical shocks can temporarily rock mortgage rates in both directions.

10-year Treasury bonds, which mortgage rates closely track, are often considered a safe-haven asset. During times of turmoil, investors typically flock to the bonds, which can push yields, and thus mortgage rates, lower.

But the war in Iran has so far had the opposite effect: Oil prices surged, rising nearly 6% to $71 a barrel as of midday on Monday, and investors worried about the possibility of higher inflation shunned Treasuries in favor of assets like gold. The yield on the 10-year Treasury rose more than 11 basis points to 4.05%.

Mortgage rates gradually drifted lower through much of last year and early 2026. Monday’s jump brings rates back to where they were for much of January and February.

“It’s never fun to see that,” said Jimmy Vercellino, a mortgage loan originator in Phoenix.

Still, if history is a guide, the rise in rates could be short-lived. During past conflicts in the Middle East, including during 2003, the 2020 assassination of Iranian Major General Qasem Soleimani, and the onset of the Gaza War in 2023, mortgage rates ultimately moved lower. But a period of volatility typically comes first.

“When you look back at conflict, typically when wars start, we do see a reduction in rates,” he said. “However, in the interim, what we see is an initial spike in rates and oil.”

Here are the current mortgage rates, according to the latest Zillow data:

• 30-year fixed: 5.81%

• 20-year fixed: 5.76%

• 15-year fixed: 5.32%

• 5/1 ARM: 5.82%

• 7/1 ARM: 5.88%

• 30-year VA: 5.41%

• 15-year VA: 5.04%

• 5/1 VA: 5.01%

Remember, these are the national averages and rounded to the nearest hundredth.

These are today’s mortgage refinance rates, according to the latest Zillow data:

• 30-year fixed: 5.85%

• 20-year fixed: 5.68%

• 15-year fixed: 5.42%

• 5/1 ARM: 5.89%

• 7/1 ARM: 5.80%

• 30-year VA: 5.40%

• 15-year VA: 5.08%

• 5/1 VA: 4.75%

Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that’s not always the case.

You can use the free Yahoo Finance mortgage calculator below to play around with how different terms and rates will affect your monthly payment. Our calculator considers factors like property taxes and homeowners insurance when estimating your monthly mortgage payment. This gives you a better idea of your total monthly payment than if you just looked at mortgage principal and interest.

You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders.

30-year mortgage rates today

Today’s average 30-year mortgage rate is 5.81%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is relatively low.

If you had a $300,000 mortgage with a 30-year term and a 5.81% rate, your monthly payment toward the principal and interest would be about $1,762, and you’d pay $334,381 in interest over the life of the loan.

The average 15-year mortgage rate is 5.32% today. Several factors must be considered when deciding between a 15-year and 30-year mortgage.

A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to compound.

However, your monthly payments will be higher because you’re squeezing the same debt payoff into half the time.

If you get that same $300,000 mortgage with a 15-year term and a 5.32% rate, your monthly payment would jump to $2,423. But you’d only pay $136,084 in interest over the life of the loan. That’s a sizable savings.

With an adjustable-rate mortgage, your rate is locked in for a set period of time and then increases or decreases periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years, then changes every year.

Adjustable rates usually start lower than fixed rates, but you run the risk that your rate will go up once the introductory rate-lock period is over. But an ARM could be a good fit if you plan to sell the home before your rate-lock period ends — that way, you pay a lower rate without worrying about it rising later.

Lately, ARM rates have occasionally been similar to or higher than fixed rates. Before dedicating yourself to a fixed or adjustable mortgage rate, be sure to shop around for the best lenders and rates. Some will offer more competitive adjustable rates than others.

Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, excellent credit scores, and low debt-to-income ratios. So if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

You can also buy down your interest rate permanently by paying for discount points at closing. A temporary interest rate buydown is also an option — for example, maybe you get a 6.25% rate with a 2-1 buydown. Your rate would start at 4.25% for year one, increase to 5.25% for year two, then settle in at 6.25% for the remainder of your term.

Just consider whether these buydowns are worth the extra money at closing. Ask yourself if you’ll stay in the home long enough that the amount you save with a lower rate offsets the cost of buying down your rate before making your decision.

Here are interest rates for some of the most popular mortgage terms: According to Zillow data, the national average 30-year fixed rate is 5.81%, the 15-year fixed rate is 5.32%, and the 5/1 ARM rate is 5.82%.

A normal mortgage rate on a 30-year fixed loan is 5.81%. However, keep in mind that’s the national average based on Zillow data. Zillow’s rates are usually lower than those reported by Freddie Mac and elsewhere. Each source compiles rates using different methods. Zillow obtains rates from its lender marketplace, and Freddie Mac pulls information from loan applications submitted to its underwriting system. The average might be higher or lower depending on where you live in the U.S. And of course, your credit score.

Mortgage rates are already better than predicted. According to February forecasts, the MBA expects the 30-year mortgage rate to be near 6.10% through the end of 2026. Fannie Mae also predicts a 30-year rate near 6% through the end of the year.