Mortgage Rates Post Highest Growth in 11 Months on U.S.-Iran War Risks

FomoAnxiety · 2026-03-12T18:54:40+00:00

The U.S. fixed-rate mortgage rate rose to 6.11%, its largest increase since April 2025, influenced by inflation concerns. Despite this, home sales increased by 1.7% in February. A bipartisan bill aims to limit institutional homebuyers to improve housing affordability.

FomoAnxiety

2026-03-12 18:54:40

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The average 30-year fixed-rate mortgage rate in the U.S. increased by 11 bps to 6.11% for the week ended March 11, registering the largest weekly jump since April 2025. The rate briefly sank below 6% last month but has since bounced higher on inflation risks tied to the U.S.-Iran war and the effective closure of the Strait of Hormuz.

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Still, rates have fallen significantly compared to 6.55% a year ago. “Despite the modest uptick, buyers are responding to rates in this range, with existing-home sales increasing 1.7% in February,” said Freddie Mac Chief Economist Sam Khater.

Lawmakers Move to Limit Institutional Homebuyers

Improving housing affordability has been a key goal of the Trump administration. On Thursday, the Senate passed a bipartisan bill banning large investors, defined as owning 350 or more homes, from purchasing single-family homes. The bill must still receive approval from the House and President Trump before it can be passed into law.

The bill aims to improve housing inventory, although it includes a provision that allows large investors who build or renovate single-family homes to exceed the 350-home limit if the additional properties are sold to non-institutional buyers after seven years.

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