{"text":[[{"start":11.4,"text":"Mortgage rates in the US and big European economies have risen again in recent weeks as the renewal of tensions between Washington and Iran reverberates through housing markets, raising costs for homebuyers and owners wanting to refinance."}],[{"start":25.16,"text":"In the US, interest rates for 30-year mortgages, the most popular product, are hovering around the highest level in more than a year, despite the Federal Reserve keeping official short-term borrowing costs on hold in 2026."}],[{"start":38.74,"text":"The rise reflected concern in financial markets that officials in the world’s largest economy would struggle to contain inflation triggered by the Iran war, after the collapse of the fragile ceasefire between Washington and Tehran last month triggered a resurgence in oil prices."}],[{"start":54.2,"text":"Average rates on the US 30-year fixed-rate mortgage were 6.67 per cent this week, according to official data. The Freddie Mac figures show that the rate has risen from 6.43 per cent at the beginning of July and from 5.98 per cent before the war began in late February."}],[{"start":null,"text":"
"}],[{"start":72.2,"text":"Rates are now above the level they were at in early August 2025, before the Fed made three quarter-point interest rate cuts late last year. Yields on 10-year Treasury bonds, the prime driver of changes in US mortgage rates, have edged up in recent weeks on the back of higher energy prices and expectations of more inflation."}],[{"start":91.24,"text":"In the UK, the average rate on a five-year fixed-rate mortgage increased to 5.66 per cent in July, the first month-on-month rise since April, according to finance site Moneyfacts."}],[{"start":102.56,"text":"Aside from the early months of the US-Iran war, rates have not been at that level since late 2023, just after the Bank of England’s base rate hit a 15-year high to contain a post-pandemic surge in inflation."}],[{"start":115.04,"text":"The BoE has also held back from raising official borrowing costs this year but the stand-off between the US and Iran has raised anxiety in financial markets, leading to higher UK swap rates, which mortgage lenders use to price their fixed-rate deals."}],[{"start":null,"text":""}],[{"start":128.88,"text":"In parts of the Eurozone, where the European Central Bank in June raised its benchmark interest rate to 2.25 per cent in response to the Middle East conflict, mortgage rates have also jumped."}],[{"start":138.56,"text":"In Germany, the representative rate for the popular 10-year fixed deal rose from 3.3 per cent at the start of July to 3.7 per cent earlier this week, according to data from retail mortgage broker Dr Klein, although it remains below the peak of almost 4 per cent in late 2023, at the height of the ECB’s rate-rising cycle."}],[{"start":158.08,"text":"The average rate on a 10-year fixed mortgage also increased in France, rising from 3.02 per cent in June to 3.15 per cent in July, according to real estate network Capifrance."}],[{"start":169.68,"text":"In the US, the rise has lifted the monthly mortgage payment on the average home by almost $150 per month, adding to cost of living pressures triggered by the Iran war’s impact on the price of fuel."}],[{"start":null,"text":""}],[{"start":181.484,"text":"US housing market analysts say the rise in mortgage rates over the course of this year has already hit a market that many hoped would stage a comeback after years of sluggish activity."}],[{"start":191.92,"text":"Noble Black, a realtor at high-end real estate agency Corcoran, said there was a “lock-in” effect across the US housing market, where homeowners who were paying low mortgage costs from a previous era did not want to sell until rates come down. “I think there’s a pretty clear correlation between the war (in Iran) . . . and where the mortgage rates are,” he said. “It’s just keeping us in this purgatory.”"}],[{"start":214.24,"text":"But Carl Gambino, real estate agent at brokerage Compass, noted that “buyers who have a real need or strong motivation to move are still transacting”."}],[{"start":223.64,"text":"Higher rates have added an average of £103 a month to the typical UK mortgage since the start of the year, rising to £201 for buyers in London, according to property site Zoopla."}],[{"start":234.96,"text":"In July, the number of sales agreed in the UK was down almost a tenth year on year, said Richard Donnell, executive director at Zoopla. “However, the same rate rises are hitting buyers very differently depending on where they are buying, which explains why some markets have slowed sharply while others are holding up,” he added."}],[{"start":253.28,"text":"Rachel Springall, finance expert at Moneyfacts, said persistent concerns over the future outlook for UK interest rates had triggered volatility in swap rates and government bond yields."}],[{"start":263.56,"text":"“One of the key catalysts has been the escalation and prolonged uncertainty surrounding the conflict in the Middle East, which pushed oil and energy prices higher,” she said, noting that the UK was particularly exposed to pressures to refinance loans as consumers tend to opt for two- or five-year fixed-rate agreements."}],[{"start":282,"text":"Additional reporting by Olaf Storbeck in Frankfurt"}],[{"start":287.76,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1786688368_9336.mp3"}