Iran War Jitters And Rising Mortgage Rates Cool Crucial U.S. Spring Housing Market, CNBC Survey Finds

Anxieties over the Iran war and a new jump in mortgage rates are cooling what is normally the most important homebuying season of the year in the United States, according to a new CNBC Housing Market Survey.

War and Rates Unsettle Buyers

The CNBC survey finds that concern about the broader economy and borrowing costs has overtaken home prices as buyers' top worry this spring. Real estate agents told CNBC that many clients are focused on headlines about the Iran conflict, rising gas prices, and job security rather than on finding a home quickly.

The crucial spring housing season had been expected to mark a rebound after a sluggish 2025, but the war's impact on energy prices and inflation expectations has changed that outlook, according to CNBC.

Mortgage rates show how sharply conditions have shifted. The average 30‑year fixed mortgage rate was about 5.99% the day before the Iran war began, but is now hovering around 6.5%, erasing hopes for significantly cheaper financing this spring.

That increase, driven in part by higher oil prices and bond market turmoil tied to the conflict, makes monthly payments more expensive and reduces the amount buyers can afford.

What the CNBC Survey Shows

The quarterly CNBC Housing Market Survey is based on responses from 70 randomly selected agents across the country, gathered between March 24 and March 30. Roughly one‑third of those agents said the overall economy is now the main concern for their buyers, and another third cited mortgage rates, both up from the previous quarter.

Only about 9% pointed to home prices as the top issue, down from 18% in the last survey, underscoring how financial and geopolitical worries now dominate buyer psychology.

Agents report that some would‑be buyers are pausing searches or taking longer to make offers as they watch how the war and rates develop. Several told CNBC that clients fear possible layoffs or slower wage growth if the conflict and higher energy costs feed through to the broader economy, the Associated Press reported.

Economists have warned that if mortgage rates stay elevated and uncertainty persists into the summer, 2026 home sales growth could shrink or even turn slightly negative compared with last year.

Prices and Inventory Still Vary

While many agents in the survey said local home prices are flat or slightly lower than late last year, nearly 29% reported price increases in the first quarter, almost double the share in the prior survey.

CNBC notes that price trends remain highly local, with some markets seeing modest gains and others experiencing small declines as higher rates bite. Earlier in the year, lower mortgage rates briefly gave buyers more purchasing power, which may have helped sellers hold firm on pricing in some regions.

Even so, major data providers say the national market feels "unseasonably slow" for spring, with pending sales and purchase applications under pressure from the latest rate spike and war‑related jitters.

Housing analysts told several outlets that if tensions ease and rates retreat later this year, some of today's pent‑up demand could return, but for now the Iran conflict and higher borrowing costs are clearly cooling the crucial spring housing market, as per ABC17 News.