Nationwide says rising mortgage costs have squeezed buyers and left UK house
prices unchanged in October. Nationwide reports prices were up just 0.5% YoY in
October, the slowest pace since Jan 2024. Major mortgage rates have risen to
about 6% from roughly 4.8% before the Iran conflict (c.+120bps), prompting some
buyers to defer viewings. Nationwide chief economist Robert Gardner said market
activity and price growth have slowed amid economic uncertainty, and that an
Iran-driven energy shock has heightened inflation concerns and pushed up market
pricing for Bank of England rate hikes, exerting upward pressure on the market
rates that underpin mortgage pricing.
