WASHINGTON — Mortgage rates climbed to their highest level in nearly 10 months amid growing geopolitical tensions tied to the war with Iran, even as pending home sales posted a third straight monthly increase in April.
Mortgage News Daily reported the average rate on a 30-year fixed mortgage rose seven basis points Tuesday to 6.75%, the highest level since July 31. The publication said rates have risen 33 basis points over the past 10 days and are now 46 basis points above their April low of 6.29%.
According to Mortgage News Daily, and as the CU Daily has reported, rates had already surged sharply earlier in the spring following the start of the conflict involving Iran, climbing from 5.99% at the beginning of March to 6.64% by the end of that month.
‘Increasingly Dire Consequences’
“Bonds are telling politicians to get serious about ending the war or face increasingly dire consequences,” Matthew Graham, chief operating officer at Mortgage News Daily, said in comments cited by the publication.
Mortgage News Daily said the increase in borrowing costs has materially altered housing affordability calculations. For a buyer putting 20% down on a $420,000 home — roughly the national median home price — monthly principal and interest payments have increased from approximately $2,012 to $2,179, a difference of $167, according to the report.
Signed Contracts Rise
At the same time, Mortgage Professional reported that signed contracts for previously owned homes rose for the third consecutive month in April, suggesting buyers continued entering the market despite economic uncertainty and rate volatility.
According to Mortgage Professional, the National Association of Realtors’ Pending Home Sales Index increased 1.4% in April to 74.8, exceeding analysts’ expectations for a 1.0% gain. Pending sales were also up 3.2% from a year earlier.
Mortgage Professional said the pending sales data is considered a forward-looking indicator because most purchase contracts close within one to two months.
“Buyers are coming out with cautious optimism despite increasing economic uncertainty and a slight rise in mortgage rates,” National Association of Realtors Chief Economist Lawrence Yun said, according to Mortgage Professional. “Demand will easily be even higher once mortgage rates retreat to the levels they were at earlier this year.”
Purchase Apps Rise
Mortgage Professional noted mortgage rates briefly fell to 6.23% in late April, helping reduce the median monthly housing payment by 2.2% year over year, but rates later climbed back above 6.5% amid renewed geopolitical tensions tied to the U.S.-Iran conflict. Freddie Mac data cited by the publication showed the benchmark 30-year rate near 6.46% at the start of April.
Mortgage Professional also cited Mortgage Bankers Association data showing purchase applications rose 4% on a seasonally adjusted basis in early May and were running 7% ahead of the same period in 2025.
Regional Performance
Regional performance varied, according to Mortgage Professional:
- The Northeast posted a 6.6% monthly increase in pending sales
- The Midwest rose 3.0%
- The West edged up 0.4%
- The South declined 0.7%, though it remained the nation’s largest housing market.
Mortgage Professional reported that Boston-Cambridge-Newton led the nation’s largest metropolitan areas with a 10.3% annual increase in pending sales, followed by Miami-Fort Lauderdale at 9.4% and Oklahoma City at 8.6%.
