What’s happening to mortgage rates?
Mortgage rates have climbed back above 6%, erasing recent progress:
- Current rate: 6.11% for a 30-year fixed mortgage (week ending March 12)
- Just two weeks ago: Rates had slipped below 6% for the first time since 2022
- Before the war: Rates were trending downward toward 5.9%
This reversal came just as the spring home buying season was starting. (CNN) (Marketplace)
Is anyone still buying homes?
Buyer activity has dropped sharply:
- New buyer enquiries fell 26% in February (up from a 15% decline the prior month)
- 1 in 4 Americans is delaying plans to buy a home or car due to war concerns
- The “lock-in effect” is back — homeowners with low-rate mortgages won’t sell, reducing inventory
Will rent go up?
Gradually, yes. The war affects rent through several channels:
- Higher mortgage rates = fewer people buy homes = more renters competing for units
- Less construction = builders face higher material and energy costs
- Economic uncertainty = landlords may raise rents to cover rising costs
- Insurance costs rising across the board
Over the longer term, rents will rise as housing costs stay elevated and the number of available units shrinks. (HousingWire)
Should I buy or wait?
There’s no perfect answer, but consider:
Reasons to buy now:
- Rates may go higher if inflation spikes further
- Less competition from other buyers right now
- Home prices haven’t dropped (inventory is still low)
Reasons to wait:
- Rates could come down if the conflict resolves quickly
- Economic uncertainty makes job security less certain
- Spring inventory hasn’t fully hit the market yet
What about renters’ rights?
If you’re a renter worried about increases:
- Check your lease terms — most leases lock in rent for the term
- Research your local rent control or stabilization laws
- Know your state’s notice requirements for rent increases
- Contact local tenant advocacy organizations if you face large increases