Zillow Puts 30-Year Refinance Rate at 6.62% as Iran Operation Keeps Mortgage Costs Elevated
Updated
Updated · Fortune · May 14
Zillow Puts 30-Year Refinance Rate at 6.62% as Iran Operation Keeps Mortgage Costs Elevated
1 articles · Updated · Fortune · May 14
Zillow’s latest data showed the average 30-year fixed refinance rate at 6.62% as of May 13, leaving borrowing costs well above the lows many homeowners locked in earlier.
Rates have stayed elevated after rising again in March 2026, when the Trump administration’s Operation Epic Fury in Iran fueled gas-price gains and broader economic uncertainty.
That backdrop has limited refinancing appeal: Redfin said 82.8% of mortgaged homeowners had rates below 6% in the third quarter of 2024, reinforcing the housing market’s lock-in effect.
Even when refinancing makes sense, borrowers face lender underwriting and closing costs typically equal to 2% to 6% of the loan amount—about $6,000 to $18,000 on a $300,000 mortgage.
How will the conflict in Iran redefine mortgage rates and home affordability for the rest of the decade?
Is the 'lock-in' effect, worsened by global instability, permanently shifting home buyers toward new construction?