The ongoing conflict between Iran and the U.S. has significantly impacted predictions regarding interest rate cuts by the U.S. Federal Reserve. Initially, analysts anticipated at least two cuts before the end of 2026, but current forecasts now suggest that cuts may not occur until 2027. BofA Global Research has adjusted its expectations to two cuts of 25 basis points each in July and September 2027, while Goldman Sachs has shifted its forecast for cuts to December 2026 and March 2027. The Fed's decision to maintain interest rates in the 3.50% to 3.75% range reflects concerns over inflation, which remains above the Fed's 2% target, exacerbated by rising energy prices due to the conflict. Additionally, the average 30-year fixed-rate mortgage has increased to 6.37%, impacting housing affordability. Sales of previously owned homes saw a modest increase of 0.2% in April, but the median selling price rose to $417,700, indicating a challenging market for buyers amidst limited inventory.