Rising Oil Prices and Geopolitical Tensions Push Mortgage Rates Higher

Rising Oil Prices and Geopolitical Tensions Push Mortgage Rates Higher

This week, surging oil prices driven by the conflict with Iran have heightened inflation concerns, causing mortgage rates to rise despite mixed economic data. Employment figures showed unexpected weakness, while manufacturing and services sectors expanded. Retail sales dipped slightly, signaling cautious consumer spending.

Last Update: March 12, 2026

Rising Oil Prices and Geopolitical Tensions Push Mortgage Rates Higher

A quick note from us This week, the conflict with Iran dominated market sentiment, driving oil prices sharply higher and raising concerns about future inflation. These inflationary pressures contributed to an increase in mortgage rates by the end of the week. While geopolitical tensions often lead investors to seek safer assets like bonds, which can lower rates, the inflation outlook and potential for increased government borrowing have outweighed that effect. Economic data was mixed: the labor market showed unexpected weakness with job losses and a rise in unemployment, but the manufacturing and services sectors expanded more than anticipated. Retail sales declined slightly, reflecting cautious consumer behavior amid these uncertainties. What this means for buyers: Buyers should anticipate higher borrowing costs due to rising mortgage rates influenced by inflation concerns and geopolitical risks. It is important to act with a clear strategy and consider locking in rates promptly to avoid further increases. What this means for sellers: Sellers may face a market with slightly reduced buyer demand as mortgage rates rise, but strong sector expansions and a stable economy still support home values. Pricing properties thoughtfully and understanding buyer sensitivities to rates will be key. Geopolitical Impact on Mortgage Rates The ongoing conflict with Iran has caused a surge in oil

Jack Misraje

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Karen Misraje

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