Housing market to soften amid Iran war fallout, Nationwide says

Nationwide says the housing market is poised to soften as fallout from the Iran conflict drives up mortgage and energy costs, potentially eroding consumer confidence. The lender noted the market regained momentum in March, but warned that sustained increases in borrowing costs and fuel prices could reverse that gains. Rising mortgage rates have historically dampened home sales and affordability, particularly for first-time buyers operating on fixed budgets. Nationwide's forecast suggests that geopolitical tensions abroad are now bleeding into domestic real estate dynamics, a sign lenders are monitoring how international conflicts ripple through consumer finances. The assessment reflects broader concerns in the financial sector about whether households can maintain spending and borrowing appetite amid inflationary pressures.