Mortgage rates in the US and Europe have climbed again as tensions between Washington and Iran flare, pushing oil prices higher and fueling inflation concerns. In the US, the 30‑year fixed‑rate average sits around 6.67%, the highest in more than a year, despite the Fed holding short‑term rates steady.

The rise reflects fears that the US economy could struggle to tame inflation sparked by the renewed conflict after the ceasefire collapsed last month. Treasury yields have edged up on higher energy costs, and the 10‑year bond rate—the main driver of mortgage pricing— has risen, lifting the average monthly payment by almost $150.

In the UK, the five‑year fixed average rose to 5.66%, the first month‑on‑month increase since April. Bank of England policy has held rates steady, but the standoff has spurred higher swap rates, pushing lenders to price deals higher. Homeowners in London now face an extra £201 a month.

Realtors Noble Black and Carl Gambino note a “lock‑in” effect: buyers with low rates are reluctant to sell, while motivated buyers still transact. Analysts warn the market may stall further as rates remain elevated, increasing the cost of living through higher energy and mortgage costs.