{"id":517967,"date":"2026-03-11T23:31:08","date_gmt":"2026-03-11T23:31:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/517967\/"},"modified":"2026-03-11T23:31:08","modified_gmt":"2026-03-11T23:31:08","slug":"iran-war-increases-mortgage-rates-how-to-find-low-rates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/517967\/","title":{"rendered":"Iran War Increases Mortgage Rates. How To Find Low Rates"},"content":{"rendered":"

Just as mortgage rates fell below 6%<\/a> at the end of February \u2014 a drop homebuyers awaited for four years \u2014 the war in Iran has pushed them back up <\/a>again. Economists predict rates could fluctuate throughout the year if the fighting continues.\u00a0<\/p>\n

Mortgage rates and the 10-year Treasury yield rose in lockstep with oil prices since the start of the war on Feb. 28: The price-per-barrel of oil rose to a high of $119.48 on March 9<\/a>; the yield on 10-year Treasurys <\/a>climbed from 3.96% on Feb. 27 to 4.21% on March 11; and average mortgage rates<\/a> jumped from 5.99% on Feb. 27 to 6.19% on March 11. <\/p>\n

The good news is that, despite the conflict abroad, rates are likely to remain much lower than they were a year ago, when the average\u00a0was 6.63%<\/a>, said two experts who spoke with CNBC Select. Still, homebuyers hoping to enter the market in the coming months will likely need to be strategic to get a rate near the 5.98% seen in late February.<\/p>\n

But before we get into those strategies, here, we outline why mortgage rates tend to move alongside the price of oil.<\/p>\n

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What do oil costs have to do with mortgage rates? <\/p>\n

Historically, transportation difficulties among oil exporters have gone hand in hand with military conflict in the Middle East. Prices customarily rise across the economy, as oil is essential for manufacturing and transporting goods, Realtor.com<\/a> economist Joel Berner told CNBC Select. Investors, in turn, demand higher returns to compensate for heightened risk in an inflationary environment, he added.\u00a0<\/p>\n

Oil prices have already spiked<\/a> 25% since the war began, and on March 6, Qatar’s Energy Minister Saad al-Kaabi warned that the war <\/a>could force the shutdown of exports within a few weeks, potentially pushing the cost per barrel to a record high of $150.\u00a0<\/p>\n

The highest per-barrel price was $147.27 in July 2008<\/a>, when the U.S.-Iraq war created an oil crisis. During that year, mortgage rates rose from a weekly average of 5.91% in April to 6.48% in August, per a CNBC analysis of Freddie Mac’s Primary Mortgage Market Survey data.<\/p>\n

However, another factor that may mitigate major jumps in mortgage rates: the oil economy has changed significantly since 2008. The U.S. is much less reliant on foreign oil, said Daryl Fairweather, the chief economist at Redfin.<\/p>\n

In 2008, the U.S. imported 12.91 million barrels per day, according to the U.S. Energy Information Administration<\/a>. In 2022, the most recent year for which data are available, the U.S. imported 8.32 million barrels per day, a 35% decrease.<\/p>\n

Simultaneously, consumption has gone up: In 2008, daily consumption was at 19.50 million barrels per day and in 2022, it was at 20.28 million barrels per day.\u00a0<\/p>\n

“We may be able to adapt out of it and stop exporting as much oil and rely more on domestic oil,” Fairweather said. “And so the long-term impacts on oil and inflation might not be all that severe, but I think that it’s yet to be seen so far.”\u00a0<\/p>\n

There’s another component at play, Berner said.\u00a0<\/p>\n

During periods of economic uncertainty, investors move money into Treasurys and mortgage-backed securities because they are considered safer than equities. This is called the “safe haven effect,” and the increased demand typically drives bond prices up and yields down, which in turn pushes mortgage rates lower.\u00a0<\/p>\n

Altogether, news about the economy, oil prices, and inflation rates is “going to lead to more volatility in rates, but it’s probably going to be like a bunch of swings up and down,” Fairweather said.\u00a0<\/p>\n

The best strategy for mortgages this year is to lock in your rate at the right moment, she said. So, if you see rates reach a low point, call your mortgage lender to secure the rate. If rates spike, wait a bit before cementing your rate.\u00a0<\/p>\n

“Locking in your rate is the best way to know exactly what your interest rate is going to be, ” Fairweather said. “But also, don’t worry about it too much, because rates are really hard to predict, and you’re never going to get it 100% right.”\u00a0<\/p>\n

In addition to Fairweather’s advice, here are three other ways you can get the best possible rate \u2014 no matter the economic environment.\u00a0<\/p>\n

Choose lenders that have lower-than-average rates\u00a0<\/p>\n

If you’re looking for lower-than-average rates, member-owner credit unions are a great place to start. <\/p>\n

With many credit unions, you need to work in a certain field, live in a particular area or fall under another specific category to get membership. But FourLeaf Credit Union \u2014 which has lower-than-average rates \u2014 is available to anyone who can open a savings account and deposit $5.\u00a0<\/p>\n

Navy Federal<\/a>, though more restrictive in its membership, is another great option, with some of the lowest rates out there. You must have served in the armed forces, or have had a sibling, spouse, parent or grandparent who served in the armed forces to get membership.\u00a0<\/p>\n

Navy Federal Credit Union<\/a>Annual Percentage Rate (APR)<\/p>\n

Apply online for personalized rates<\/p>\n

Types of loans<\/p>\n

Conventional loans, VA loans, Military Choice loans, Homebuyers Choice loans, adjustable-rate mortgage<\/p>\n

TermsCredit needed<\/p>\n

Not disclosed but lender is flexible<\/p>\n

Minimum down payment<\/p>\n

0%; 5% for conventional loan option<\/p>\n

Online lenders also tend to have lower rates. That’s because they don’t incur the costs of physical retail locations. Better Mortgage<\/a> is one such online lender, and offers lower-than-average rates and other perks, like speedy closing and grants for first-time homebuyers.\u00a0\u00a0<\/p>\n

Better Mortgage<\/a>Annual Percentage Rate (APR)<\/p>\n

Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included<\/p>\n

Types of loans<\/p>\n

Conventional loan, FHA loan, Jumbo loan and adjustable-rate mortgage (ARM)<\/p>\n

TermsCredit neededMinimum down payment<\/p>\n

3.5% if moving forward with an FHA loan<\/p>\n

Optimize your credit score\u00a0<\/p>\n

You can get a significantly lower rate if you take a few months to work on your credit score.\u00a0<\/p>\n

According to Experian<\/a>, the average mortgage rate on a 30-year fixed-rate mortgage for someone with a 620 credit score is 7.17%, while the average mortgage rate on a 30-year fixed-rate mortgage for someone with a 780 credit score or higher is 6.20%.<\/p>\n

To improve your credit, focus on making on-time payments, paying down debt and keeping your credit utilization below 10%.\u00a0<\/p>\n

Additionally, try Experian Boost,<\/a> which is a free feature<\/a> that pulls on-time utility and rent payments into your report, which can help increase the number.\u00a0<\/p>\n

Experian Boost\u00ae<\/a>CostAverage credit score increase<\/p>\n

13 points, though results vary<\/p>\n

Credit report affectedCredit scoring model used<\/p>\n

Results will vary. See website for details.<\/p>\n

Consider a 15-year term\u00a0<\/p>\n

Most 15-year fixed-rate mortgages come with rates lower than 30-year fixed-rate mortgages. For example, for the week ending March 5, the average 30-year fixed rate was 6.98% while the average 15-year rate was just 5.43%.\u00a0\u00a0<\/p>\n

Rocket Mortgage<\/a> and Bank of America<\/a>\u2014 two companies on our top mortgage lenders list \u2014 are great options for 15-year mortgages. Each has high customer satisfaction ratings from J.D. Power, along with a diverse array of loan options.\u00a0<\/p>\n

Rocket Mortgage<\/a>Annual Percentage Rate (APR)<\/p>\n

Apply online for personalized rates; fixed-rate and adjustable-rate mortgages are available.<\/p>\n

Types of loans<\/p>\n

Conventional loans, FHA loans, VA loans, Jumbo loans, low-down-payment mortgages<\/p>\n

Terms<\/p>\n

10-, 15- and 30-year fixed-term conventional loans, 30-year VA and FHA loans, custom mortgages with fixed-rate terms from 8 to 29 years.<\/p>\n

Credit needed<\/p>\n

620 for conventional loans<\/p>\n

Minimum down payment<\/p>\n

0% for VA, 1% for RocketONE+, 3% for conventional, 3.5% for FHA, 10% to 15% for jumbo<\/p>\n

Bank of America Home Mortgage Loans<\/a>Annual Percentage Rate (APR)<\/p>\n

Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included<\/p>\n

Types of loans<\/p>\n

Conventional loans, FHA loans, VA loans, Affordable Loan Solution\u00ae mortgage, Doctor loans<\/p>\n

TermsCredit needed<\/p>\n

Conventional loans typically require a 620 credit score<\/p>\n

Minimum down payment<\/p>\n

3% with Bank of America’s Affordable Loan Solution\u00ae mortgage loan<\/p>\n

Offers first-time homebuyer assistance?<\/p>\n

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Money matters \u2014\u00a0so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.\u00a0Sign up here<\/a>.<\/p>\n

Why trust CNBC Select?<\/p>\n

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.<\/p>\n

Meet our experts<\/p>\n

At\u00a0CNBC Select<\/a>, we work with experts who have specialized knowledge and authority based on relevant training and\/or experience. For this story, we interviewed\u00a0two economists: Daryl Fairweather<\/a>, chief economist for Redfin, who has a Ph.D in economics from the University of Chicago, where she specialized in behavioral economics; and Joel Berner<\/a>, a senior economist with Realtor.com, who has a master’s degree in economics from the University of Texas. <\/p>\n

Catch up on CNBC Select’s in-depth coverage of\u00a0credit cards<\/a>,\u00a0banking<\/a>\u00a0and\u00a0money<\/a> and follow us on\u00a0TikTok<\/a>,\u00a0Facebook<\/a>,\u00a0Instagram<\/a>\u00a0and\u00a0Twitter<\/a>\u00a0to stay up to date.<\/p>\n

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff\u2019s alone, and have not been reviewed, approved or otherwise endorsed by any third party.<\/p>\n