Donald Trump announced the White House ordered 250 Cadillac Escalades, costing at least $22 million, during a Michigan speech. This decision is criticized amidst rising gas prices, mortgage rates, and an "affordability crisis" linked to the Iran war, with critics highlighting the symbolic disconnect.
UK average mortgage rates have increased to a month-ago level, driven by renewed Middle East tensions and Houthi attacks on oil tankers in the Red Sea. This has pushed oil prices higher, stoked inflation fears, and reduced prospects for central bank interest rate cuts, leading major lenders to raise rates on new fixed deals.
Mortgage rates continued their climb last week, with the 30-year fixed rate reaching 6.69%, the highest since last August. Despite this, total mortgage demand increased by 1.9% as homebuyers returned to the market, possibly due to less competition and price cuts, while refinance demand fell.
The US housing market is experiencing a worsening affordability crisis, with June's pending home sales falling 5.4% and national median home prices hitting a record high. Builder sentiment also dropped in July, marking 15 consecutive months of negative outlook, driven by high mortgage rates, costly land, and labor shortages.
The UK housing market is poised for a prolonged period of stagnant house prices due to elevated mortgage costs, geopolitical tensions, and domestic political uncertainty, according to Bloomberg's analysis of RICS survey data. Buyer activity is slowing, with little expected movement in prices over the next three months.
US existing home sales fell in June due to high mortgage rates and record prices, despite job gains. Inventory remains tight, pushing median prices to a new high of $440,600. Sales are strongest at the higher end of the market.
Three in five UK homes listed since January remain unsold, with high mortgage rates and prices deterring buyers. Sales are down 7% year-on-year, with first-time buyers most affected by rising costs, though lender competition is increasing.
Mortgage application volume fell 3.8% last week due to mixed rate movements. Refinance applications dropped 5%, while purchase applications decreased 3%. Rates are influenced by inflation data and optimism over the Strait of Hormuz opening, with potential impacts from oil price fluctuations.
South Korea's COFIX, a benchmark for bank mortgage rates, rose 0.01 percentage points to 2.90% in May, marking the second consecutive monthly increase. This rise occurs despite the Bank of Korea holding its key rate steady, amid expectations of a future hike.
New research from the Federal Reserve Bank of St. Louis shows a rise in mortgage application denials, with debt-to-income ratios being a primary cause. Higher interest rates are pushing more applicants above lender thresholds, blocking access to credit.
Total mortgage application volume fell 2.5% last week as demand for home purchases slowed to its lowest pace since April, despite a slight decrease in the average 30-year fixed-rate mortgage to 6.57%. Refinance applications also declined.
Mortgage rates climbed last week, reducing loan demand and pushing consumers toward riskier adjustable-rate mortgages. Total applications fell 2.3%, with 30-year fixed rates hitting a 7-week high of 6.56%.
Mortgage rates have reached their highest point since July 2025, with predictions of surpassing 7% this year. Experts advise locking in loans now due to market volatility influenced by geopolitical events and inflation.
Growing concerns over the war with Iran are pushing bond yields higher, causing average 30-year fixed mortgage rates to climb to 6.75%, the highest since July 31. This impacts housing affordability, increasing monthly payments for buyers.
The UK housing market is experiencing a slowdown due to concerns over rising inflation and mortgage rates linked to the Middle East conflict, with reduced buyer inquiries, slower sales, and price sensitivity, according to the RICS survey.
Mortgage rates climbed Wednesday following a hot inflation report (PPI), adding to recent surges driven by war concerns. This impacts the spring housing market, which was showing signs of recovery despite still-limited inventory and cooling price growth.
Mortgage applications increased 1.7% week-over-week, with purchase applications rising 4% and refinance applications declining 1%, as buyers adapt to higher mortgage rates (30-year fixed at 6.46%) despite economic uncertainties.
Warsh would succeed outgoing Fed chair Jerome Powell as Trump continues his push to influence the US central bankSign up for the Breaking News US newsletter email The US Senate is expected to confirm Kevin Warsh this week as chair of the Federal Reserve, as Donald Trump continues his campaign to influence the world’s most important central bank.The Fed’s influence over the economy spans from the job market to mortgage rates, and its every move is carefully scrutinized by investors on Wall Street. Warsh’s confirmation comes at a turbulent time for the central bank, which has fallen under intense scrutiny from Trump for not lowering interest rates. Continue reading...
Diageo shares rose 2% after Trump announced removal of 10% tariffs on Scotch whisky in honor of King Charles. UK house prices unexpectedly increased 0.4% in April with annual growth reaching 3.0%, while NatWest reported Q1 profits of £1.4bn despite setting aside £140m for potential economic worsening.
The Federal Reserve held interest rates steady at 3.5%-3.75% in what may be Chair Jerome Powell's final meeting before Kevin Warsh takes over. Inflation has surged since the Iran war began, limiting policymakers' room to act. Credit card rates remain near 20%, while mortgage rates hit 6.38% and auto loan payments reached a record $773 monthly.
Mortgage rates rose to 6.45% on Wednesday, the highest since April 3, after President Trump said he would maintain the U.S. naval blockade against Iran until a nuclear deal was reached. The statement sent oil prices higher and bond yields followed, pushing the 30-year fixed mortgage rate up seven basis points. Despite higher rates, mortgage applications surged 1% last week, up 21% year-over-year, suggesting buyers may be adapting to the higher rate environment.
Mortgage rates increased to 6.37% for 30-year fixed loans, causing refinance applications to fall 4% while purchase applications rose 1% week-over-week. Despite the rate climb, homebuyers are showing renewed interest ahead of spring, with purchase applications up 21% year-over-year. The MBA notes consumers appear to be moving forward despite geopolitical uncertainties related to the war with Iran.
Oil prices rose to a three-week high as US-Iran peace talks stalled, with Brent crude jumping around 2% to $107.97 a barrel. President Trump cancelled plans to send envoys to Pakistan for ceasefire talks, saying too much time was wasted on travel, and said Iran must come to the US to negotiate. However, Tehran has submitted a new proposal to reopen the Strait of Hormuz and end the war, with nuclear negotiations postponed for later.
Jonathan Brash says ‘own goals’ are distracting from Labour’s achievementsUK inflation accelerated to 3.3% in March after the Iran war triggered the biggest jump in fuel prices for more than three years, Richard Partington reports.Today the Liberal Democrats staged a photocall to publicise their line about this being “Trumpflation”. Daisy Cooper, the Lib Dem deputy leader and Treasury spokesperson, said:People across our country have been struggling for years with a devastating cost-of-living crisis and Donald Trump’s idiotic war in Iran has added to it. The cost of fuel is soaring, mortgage rates are rising and fixed energy deals are already going up by hundreds of pounds.But what is utterly inexcusable is that there are politicians in this country - Nigel Farage and Kemi Badenoch - who are happy to cheerlead Donald Trump as he hikes people’s bills. All the while this Labour government promised to fix the country but instead we’ve got political Groundhog Day: yet more sleaze and scandal. Continue reading...
