Mortgage rates in the US, UK, and Germany have surged sharply due to the economic impact of the Middle East conflict, particularly the blockade of the Strait of Hormuz. This has led to increased oil prices, which in turn have raised government borrowing costs and prompted mortgage lenders to anticipate future central bank rate hikes to curb inflation. In the US, the 30-year mortgage rate has climbed to 6.36%, surpassing pre-rate cut levels from September 2025. The UK has seen the most significant increase, with two-year fixed-rate mortgages rising from 3.97% to 5.1% since February. In Germany, 10-year mortgage rates have increased by approximately 0.3 percentage points to around 3.6%. Economists warn that if the blockade persists, mortgage rates could rise further, forcing central banks to increase interest rates and exacerbating pressure on homebuyers. The conflict has shifted the core variable in the housing market from central bank policy to geopolitical developments, with potential stagflation risks looming if tensions escalate.