The fallout of the United States vs Iran war has caused a major upheaval in the U.S. economy. The average rate on a benchmark 30-year fixed home loan climbed to 7.03% this week, crossing the 7% mark for the first time since early 2025. The spike directly tracks a selloff in global bond markets, where benchmark 10-year U.S. Treasury yields touched multi-year highs above 5.1% amid sticky inflation and rate-hike pressures. The rising rates impact ordinary Americans most as it immediately spooked the housing markets making rents costlier. Shorter borrowing costs also jumped, with the average 15-year fixed-rate mortgage climbing to 6.42% from 6.26% the prior week. This also has a spillover effect on the world economy.

Full report : Iran war causes U.S. mortgage rates to cross 7% mark as treasury yields surge and housing freezes.