Mortgage rates in the United States have begun rising again, reversing a brief decline that had pushed the average 30 year fixed rate below 6 percent for the first time in years. The rate climbed to 6.11 percent this week, dampening hopes that the long frozen housing market might begin to recover during the spring buying season.

The increase follows renewed inflation concerns after military strikes by the United States and Israel on Iran triggered an energy shock and unsettled financial markets. Yields on the 10 year Treasury note, which heavily influence mortgage rates, rose to 4.25 percent, reducing expectations that interest rates will fall later this year.

Higher borrowing costs add to existing affordability challenges, including elevated home prices, insurance premiums, and property taxes. Although current rates remain below the recent peak of 7.8 percent in October 2023, uncertainty surrounding the economy and geopolitical tensions may keep many potential buyers on the sidelines, prolonging the housing market slowdown that began after the pandemic era surge in home buying.