Orphe Divounguy notes that 30-year fixed-rate mortgages reached their highest level of 2026 as rates climbed to 6.85%.
Orphe Divounguy, a senior economist at real-estate platform Zillow, noted that 30-year fixed-rate mortgages reached a new high for 2026, averaging 6.85% on Thursday. This increase follows a 22-basis-point jump since Monday, creating a significant hurdle for prospective homebuyers. The rise in mortgage rates is largely driven by tensions between the U.S. and Iran, which have pushed up energy prices and sparked inflation concerns. These factors have increased 10-year Treasury yields, which typically move in tandem with mortgage rates. While some economists suggest that 7% mortgage rates are possible if Treasury yields approach 5%, others argue that a ceiling exists because lenders must price loans competitively to attract buyers in a low-transaction environment. Higher rates, combined with record-high home prices and rising gas costs, are expected to squeeze the housing market. Divounguy warned that sustained pressure on oil prices could keep mortgage rates higher than last year's levels, potentially depressing housing activity for the remainder of the year.