War Impacts Home Buying as Market Shifts

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The economic fallout from the ongoing war with Iran is driving up the cost of buying a home, even as other housing market trends in many parts of the country are starting to favor home shoppers this spring, according to real estate experts.

Why it matters

The housing market is a key economic indicator, and shifts in affordability and demand can have ripple effects across the broader economy. The impact of the war with Iran on mortgage rates and home prices is an important development that will affect both prospective buyers and the housing industry.

The details

The war with Iran has disrupted global energy markets, leading to higher fuel and energy costs that are being passed on to consumers in the form of higher mortgage rates. This is making it more expensive for buyers to finance home purchases, even as other factors like increased inventory and moderating price growth are starting to tilt the market in their favor in some regions.

• The war with Iran began in late 2025 and is ongoing.
• Home prices and mortgage rates have been rising steadily since the start of 2026.

What’s next

Economists will be closely monitoring the interplay between the war's impact on the housing market and broader economic conditions in the coming months.