Middle East conflict lifts mortgage costs worldwide despite steady policy rates

Mortgage costs have surged in the US, Europe, and the UK as the Middle East conflict raises government borrowing costs and oil prices, even with central banks keeping rates unchanged. The US 30-year mortgage rate has climbed to about 6.36%, Germany’s popular loan rate stands near 3.6% for a €350,000 loan, and the UK two-year fixed rate with 75% loan-to-value has risen to roughly 5.1%. Analysts say higher funding costs and a latent need to curb inflation could push rates still higher if the Strait of Hormuz disruption persists, potentially slowing home buying and refin refinancing activity.