Mortgage rates are surging because of the Iran war. Here's what to do.
Mortgage rates in the US are surging due to the Iran war, affecting the housing market. As a result, adjustable-rate mortgages (ARMs) are becoming a more attractive option for borrowers, offering lower rates for an introductory period.
Mortgage rates are rising due to the Iran war. The 30-year fixed-rate mortgage rate has increased to 6.38%. Adjustable-rate mortgages (ARMs) are becoming more popular, offering a lower rate for a set period, usually 5 or 7 years. After this period, the rate can adjust up or down. ARMs can provide significant savings, with a recent analysis showing a $185 monthly savings for the median-priced home. They are particularly popular in high-cost markets like California, where they accounted for over 31% of mortgage originations in 2025. However, ARMs also come with risks, such as the potential for rates to adjust upward, increasing monthly payments.
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