Mortgage rates surge to nearly four-week high as Iran headlines impact markets

An aerial view of homes in a neighborhood on Aug. 27, 2025 in San Francisco, California. Justin Sullivan | After basically flatlining for the last few weeks, mortgage rates moved decidedly higher Wednesday after President Trump said he would maintain the U.S. naval blockade against Iran until they agreed to a nuclear deal. That sent oil prices higher, and bond yields followed. As a result, the average rate on the 30-year fixed mortgage, which began climbing Tuesday, rose seven more basis points to 6.45% according to Mortgage News Daily. That is the highest rate since April 3. Mortgage rates loosely follow the yield on the U.S. 10-year Treasury. "Just over a week ago, rates had been positioning themselves for another de-escalation in the Iran war. When that didn't happen, a gentle upward drift began," said Matthew Graham, chief operating officer at Mortgage News Daily. "Now this week, that pace is becoming more brisk as de-escalation hopes have been replaced by re-escalation fears." Get Property Play directly to your inbox CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. Subscribe here to get access today . Higher rates since the start of the war had been keeping homebuyers on the sideline, but mortgage applications to buy a home surged higher last week, up 1% for the week and up 21% from the same period a year ago, according to to the Mortgage Bankers Association. …