Mortgage Rates Surge Above 6% As Iran War Ripples Through Housing Markets Worldwide

Mortgage costs are rising sharply across the U.S. and Europe as the economic fallout from the Middle East conflict spreads into global housing markets, increasing pressure on homebuyers and borrowers despite central banks holding interest rates steady.

According to a Financial Times report published Monday, the average U.S. 30-year fixed mortgage rate has climbed to 6.36%, moving above levels seen before the Federal Reserve began cutting rates in 2025. The report said lenders are reacting to rising government borrowing costs and growing fears that inflation could accelerate again if oil prices remain elevated.