Iran Conflict Pushes US Mortgage Rates Above 6%, Cooling Housing Market

Mortgage rates in the US have surged above 6% due to escalating conflict involving Iran, reversing recent declines that hinted at a buyer's market. This has led to a significant 17.6% drop in new home sales in January, the steepest since 2013, despite a minor rebound in pending sales in February. The rising rates and geopolitical tensions have intensified affordability challenges, suggesting continued pressure on housing demand as the market dynamics evolve.