The Iran War Isn’t Just Moving Oil Markets—It’s Pricing Homebuyers Out

The median monthly mortgage payment is now $2,750, up 0.2% from a year ago, as mortgage rates climb to 6.46%—the highest since September. That increase, driven in part by financial market turmoil from the Iran war, has helped push pending home sales down 2.4% year over year for the four weeks ending April 5, the largest drop in three months. Home prices rose 2.2% annually, the biggest jump in a year, compounding the pressure on buyers already facing elevated borrowing costs. The war has rattled markets, sent oil prices fluctuating, and contributed to widespread economic uncertainty, further chilling homebuyer demand. Homes are now taking longer to sell, with the typical home staying on the market for 51 days—six days longer than last year and the slowest pace for this time of year since 2019. Despite low supply and a national inventory of just 4.2 months—typically signaling seller’s market conditions—there are more homes on the market than buyers, making this a strong buyer’s market. Sellers are being advised to invest in presentation, repairs, and professional photography to stand out. Buyers with large down payments and capacity for high monthly payments are demanding near-perfect homes, knowing they have leverage. The ceasefire announced Tuesday may help ease oil and mortgage rates back into the low-6% range, but the damage to spring homebuying momentum has already taken hold.