US home buyers 'frozen' as sales slump over Iran war fears

The number of homes sold in the US hit a nine-month low, with economists warning of the slowdown could worsen.

The US housing market is struggling as the impact of higher mortgage rates, fueled by the US-Israeli war in Iran, begins to bite. Figures from the National Association of Realtors (NAR) showed the number of homes sold in March hit their lowest level for nine months, falling by 3.6% from a month earlier.

The number of homes sold in the US hit a nine-month low, with economists warning of the slowdown could worsen.

Recession Fears Ease, But Growth Stalls: Despite geopolitical turmoil and a weak consumer mood, the economy remains tepid rather than collapsing; recession odds have fallen as markets respond to hints of de-escalation in the Iran conflict. High Rates, Higher Uncertainty: Mortgage rates rose roughly 60 bps since the war began, erasing early‑year progress and muting the expected 2026 housing sales rebound. The government’s inflationary stance and war‑related energy spikes reinforce “higher for longer” borrowing costs. Frozen Housing Market: Elevated rates, cautious buyers, and a persistent lock‑in effect keep inventory tight, and sales subdued. The result is a stagnant housing sector—neither surging nor crashing, just stuck in a fog of uncertainty.