Iran Conflict Fuels Rise in US and European Mortgage Rates

According to the International Desk of Webangah News Agency, mortgage rates in the United States and major European economies have seen a renewed surge in recent weeks, attributed to the intensification of tensions between Washington and Iran. This development is affecting housing markets and increasing the cost of homeownership.

In the United States, the interest rate for 30-year mortgages, the most common type, is nearing its highest level in over a year. This rise signals financial market concerns that authorities in the world’s largest economy may face challenges in curbing inflation stemming from the conflict involving Iran.

In the United Kingdom, the average rate for a five-year fixed-rate mortgage rose to 5.66 percent in July, marking its first monthly increase since April. Interest rates had not reached this level since late 2023.

Mortgage rates have also climbed in some parts of Europe. The European Central Bank had previously raised its main interest rate to 2.25 percent in June in response to the conflict in the Middle East.

In Germany, the benchmark rate for a 10-year fixed-rate mortgage, a common loan type, increased from 3.3 percent in early July to 3.7 percent earlier this week.

Similarly, the average interest rate for 10-year fixed-rate mortgages in France rose from 3.02 percent in June to 3.15 percent in July.