Fixed mortgage rates remain elevated this summer, defying seasonal expectations of a cooling trend as persistent inflation concerns weigh on the market.
The stagnation reflects a broader macroeconomic environment where borrowers are hesitant to lock in long-term debt amid uncertainty over future price stability.
The primary driver behind the sticky rates is the ongoing war in Iran, which continues to fuel inflationary pressures.
Geopolitical instability in the region has kept energy markets on edge, with shipping risk premiums holding firm following recent incidents in the Strait of Hormuz.
These supply-side shocks translate directly into higher consumer price expectations, which in turn anchor long-term bond yields and mortgage rates at higher levels.
Market data underscores the lack of momentum in the housing finance sector.