March 2026 continues to be an undesirable month for home loan rates– a reality almost solely due to the Iran war. Even if the war were to end today, there’s been sufficient disruption to infrastructure and a big enough preliminary spike in energy prices to produce what economists refer to as “2nd round results.” In easier terms, this means that inflation expectations and rate of interest will not right away go back to February’s levels just because the war is over.
That’s an early discussion today when headings concerning U.S. troop implementation caused rates to leap at 1pm ET. Many home mortgage lenders repriced to greater levels after that with the typical top tier 30yr fixed rate hitting 6.55% for the very first time given that August 2025.
Subsequent comments regarding de-escalation assisted the bond market recuperate some of those preliminary losses, but the marketplace would like to see a more ironclad announcement before reacting in a more significant way.