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US Housing Market Stalled: Mortgage Rates Spike to 6.48 Percent Amid Iran Conflict
Published 1 month ago
Description
In the past 48 hours, the US housing market remains stalled amid spiking mortgage rates driven by the ongoing Iran conflict and soaring oil prices. On March 25, the 30-year fixed-rate mortgage hit 6.48 percent, up from a brief dip below 6 percent just before the war started on February 28, erasing affordability gains and rattling buyers.[2][5] Zillow economists now see 2026 as a range of scenarios rather than modest growth, with elevated rates dragging spring sales and removing a third of year-over-year affordability improvements seen earlier.[2]
Home prices are up 60 percent from pre-pandemic levels, fueled by a persistent 4.7 million unit shortage per Zillow's 2025 report, with no short-term relief expected.[1] Median sale prices held nearly flat year-over-year at around 396,800 dollars in January, offset by lower rates then, but recent spikes have sidelined buyers further.[3] Existing home sales dropped 4.4 percent year-over-year to 3.91 million units in January, with inventory up slightly to 1.22 million but still far below balanced levels.[3]
Zillow CEO Rich Barton highlighted Trump administration moves like an executive order easing mortgage regulations and a bipartisan Senate bill passed 89-10 to cut barriers and limit corporate homeownership, potentially boosting supply as sellers tolerate rate gaps.[1] In Austin, buyer leverage grows with 46.7 percent of listings price-reduced and 5.15 months inventory, pending sales up 8.2 percent year-over-year, signaling demand pickup amid corrections.[7] Wages outpaced home prices by 4.6 percent versus 2.7 percent in Cook County.[6]
Compared to early 2026 optimism for 4.3 percent sales growth, volatility from inflation and war has shifted the outlook to stagnation, with regional pockets like Bay Area inventory plunging 37 percent in San Francisco while homes sell in days.[3] Leaders like Zillow push AI tools for affordability, but consumers pause, waiting for stability.[1][2] (298 words)
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI
Home prices are up 60 percent from pre-pandemic levels, fueled by a persistent 4.7 million unit shortage per Zillow's 2025 report, with no short-term relief expected.[1] Median sale prices held nearly flat year-over-year at around 396,800 dollars in January, offset by lower rates then, but recent spikes have sidelined buyers further.[3] Existing home sales dropped 4.4 percent year-over-year to 3.91 million units in January, with inventory up slightly to 1.22 million but still far below balanced levels.[3]
Zillow CEO Rich Barton highlighted Trump administration moves like an executive order easing mortgage regulations and a bipartisan Senate bill passed 89-10 to cut barriers and limit corporate homeownership, potentially boosting supply as sellers tolerate rate gaps.[1] In Austin, buyer leverage grows with 46.7 percent of listings price-reduced and 5.15 months inventory, pending sales up 8.2 percent year-over-year, signaling demand pickup amid corrections.[7] Wages outpaced home prices by 4.6 percent versus 2.7 percent in Cook County.[6]
Compared to early 2026 optimism for 4.3 percent sales growth, volatility from inflation and war has shifted the outlook to stagnation, with regional pockets like Bay Area inventory plunging 37 percent in San Francisco while homes sell in days.[3] Leaders like Zillow push AI tools for affordability, but consumers pause, waiting for stability.[1][2] (298 words)
For great deals today, check out https://amzn.to/44ci4hQ
This content was created in partnership and with the help of Artificial Intelligence AI