The interest rate on a 30-year, fixed-rate mortgage rose Thursday to its highest level since the war began, upending several weeks of steady rates as the U.S.-Israeli war with Iran approached its third month without significant progress toward peace.

The 30-year rate hit 6.51%, mortgage finance giant Freddie Mac said. That’s up from 6.36% the week before and the highest since August.

That rate was still significantly below the peak of 7.79% in October 2023. But the increase comes when consumers in the United States are grappling with more debt and higher prices due to constrained energy supplies. Disruptions in the Strait of Hormuz, a vital oil passageway in the Persian Gulf, has choked off about 20% of the world’s oil supply since the war began Feb. 28.

That has spiked costs on everyday items, including fuel and groceries. On Thursday, the average price for a gallon of regular gasoline in the United States was $4.56, according to AAA. That was 53% higher than before the war began.

The S&P 500 dipped briefly after the mortgage rate was announced at noon Thursday.

Investors have grown increasingly anxious about rising inflation. This week, bond markets pushed the rates on U.S. Treasurys to levels not seen since the global financial crisis nearly 20 years ago. A report from the Bureau of Labor Statistics said last week that wholesale prices rose in April at their fastest rate in four years. Earlier government data showed that inflation had risen at its fastest pace in nearly three years.

Mortgage rates are influenced by yields on the 10-year Treasury note, which rose last week to the highest level since July after data pointed to accelerated inflation rates. This week, the yield on the 30-year Treasury note also spiked to its highest point since 2007. The rising rates are pushing up borrowing costs for governments, homeowners and businesses.

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This article originally appeared in The New York Times.

By Emmett Lindner
c. 2026 The New York Times Company