US-Iran Conflict Sparks Global Mortgage Rate Surge

The ongoing conflict between the US and Iran has sent shockwaves through global financial markets, causing mortgage rates to rise in several countries. According to recent data, interest rates on 30-year mortgages in the US have reached their highest level in over a year, reflecting concerns about inflation stemming from the war.

In Europe, mortgage rates are also increasing, with the average five-year fixed rate in the UK reaching 5.66% in July - its highest level since late 2023. The European Central Bank raised its key interest rate to 2.25% in June in response to the conflict in West Asia.

In Germany and France, benchmark rates for 10-year fixed-rate mortgages have also risen, from 3.3% to 3.7% and from 3.02% to 3.15%, respectively.