Iran War Keeps 30-Year Mortgage Rates Above 6%, FHA Loans Average 6.14%

1 articles · Updated · CNBC · Jun 12

30-year FHA fixed loans averaged 6.14% on June 10, below the 6.60% conventional average and offering one of the few cheaper paths for buyers facing stubborn borrowing costs.
Mid-6% mortgage rates are persisting because the Iran war is now driving rate moves, with Realtor.com saying ceasefire hopes pull rates down and renewed conflict pushes them back up.
Freddie Mac's 30-year fixed rate stood at 6.52% in early June after briefly dipping below 6% before the war, undermining forecasts that rates could end 2026 around 6.0% to 6.3%.
That has weakened the expected housing rebound: sales are up from 2025's three-decade low, but economists say pent-up demand is still being sidelined by affordability pressures.
FHA loans remain the broadest federally backed option, available to borrowers with credit scores as low as 500 and down payments starting at 3.5% for scores of 580 or higher.