High Housing Costs, Mortgage Rates Keeping Some Prospective Homebuyers at Bay, Redfin Says

03:46 PM EDT, 03/26/2026 (MT Newswires) -- US housing costs and mortgage rates are on the up amid the uncertainty and inflation concerns caused by the ongoing Middle East conflict, sending some prospective homebuyers to the sidelines, Redfin said Thursday.

The weekly average 30-year fixed mortgage rate hit a three-month high of 6.22% in the week through March 19, the online real estate brokerage said, citing Freddie Mac data. On Tuesday, the daily average mortgage rate reached as high as 6.55%, according to the Thursday report.

The median home-sale price in the four weeks ending March 22 reached $389,269, up 1.8% year over year and marking the largest increase since November, Redfin said.

The elevated mortgage rates and home-sale prices drove the median monthly housing payment to $2,695, the highest since June. The median payment fell 1.5% on an annual basis, marking the smallest drop in five months, according to the report.

"Higher housing costs, along with the economic uncertainty that comes along with the Iran war and rising oil prices, are pushing some house hunters to the sidelines," Redfin said.

The US-Israel war with Iran started Feb. 28 and has affected several Gulf countries. The closure of the crucial Strait of Hormuz amid the war has sent energy prices soaring.

On Wednesday, the Mortgage Bankers Association said mortgage applications in the US tumbled last week as rates continued to rise amid fears that the Middle East conflict will keep oil prices elevated.

The Organization for Economic Co-operation and Development said Thursday that a prolonged period of high energy costs will substantially drive up consumer inflation globally, with price growth in the US seen hitting 4.2% this year.

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