But for the housing and mortgage sectors, it’s “too early to tell” whether the ceasefire will materially improve consumer confidence and homebuying appetite, according to Hudson Rose managing director Graham Taylor.
While the outlook on the BoE base rate now appears more stable, Taylor doesn’t see rates posting a sharp downward trend – although it could at least slow the trend of major high street lenders bumping up their own rates.
“I don’t expect a sudden turnaround to where we were prior to the war starting, but hopefully we might see a roll back on some of the rate hikes as lenders become more confident in their outlook,” Taylor told Mortgage Introducer.
Still, details are thin on the ground on what form the upcoming negotiations between the US and Iran on a more permanent end to the war might take, and US mortgage professionals have already flagged the fact that the two sides appear to be some distance apart on a deal.
For Taylor, that uncertainty is part of the reason for tempered expectations looking ahead. “The issue with the current leadership in the US is that it’s unpredictable,” he said. “So for now, I think it’s a case of hoping for the best but not being surprised if things turn out a little trickier.”