Mortgage Rates Surge in US, UK on Middle East Conflict

Mortgage rates across the United States and United Kingdom have surged in recent weeks, driven by escalating conflict in the Middle East that began in late February 2026, when the United States and Israel initiated military action against Iran. The average 30-year fixed-rate mortgage in the U.S. reached 6.22 percent for the week ending March 19, according to Freddie Mac, marking an increase from 6.11 percent the prior week and the highest level since early December 2025. Daily rates climbed even higher, with top-tier quotes hitting 6.53 percent on March 20, as reported by industry trackers.

This upward trend stems from disrupted oil supplies in the region, which have pushed Brent crude prices up more than 50 percent in the past month. Higher energy costs have fueled inflation fears, prompting investors to demand greater yields on government bonds. In the U.S., the 10-year Treasury yield rose to around 4.28 percent by week's end, up from 3.96 percent before the war started. Mortgage rates, which closely follow these yields, have reflected the broader market volatility. The Federal Reserve, citing uncertainty tied to Middle East developments, held its benchmark rate steady at 3.5...