Will Global Conflict Shake the U.S. Housing Market?

Neil Caron
Jun 25
2 min read

June 25, 2025 | Market Insights | Presented by ReadySetLoan™

When international headlines scream “conflict,” most Americans don’t instinctively think of mortgage rates or home values. But should they?

As tensions between the U.S. and Iran continue to make waves globally, financial markets are showing slight tremors — though, for now, the U.S. housing market remains relatively steady. The question is: for how long?

So Far, So Stable

Despite geopolitical tensions, mortgage rates haven’t surged, home prices haven’t collapsed, and buyers haven’t bolted from open houses. That’s largely because the U.S. housing market doesn’t react overnight to international unrest. However, investor behavior, oil prices, and Federal Reserve policy can eventually ripple into real estate decisions.

🐷 RSL Piggy Point:Global conflict doesn’t cause immediate chaos in your local housing market — but uncertainty can still slowly shape financial conditions, including interest rates and consumer confidence.

Where We Could Feel It

Here are some of the ways the current U.S.–Iran conflict could influence Connecticut's real estate landscape and national housing trends:

Interest Rates: Conflict-driven economic uncertainty often leads investors to buy U.S. Treasury bonds — a move that typically drives down yields and indirectly lowers mortgage rates.
Oil Prices: A spike in oil prices could increase inflation concerns, pushing the Fed to delay rate cuts — or even raise rates.
Consumer Confidence: If Americans become anxious about global stability or recession risk, homebuying demand could dip.
Defense Spending & Federal Budgets: Extended conflict may shift public spending priorities, which could influence programs that support affordable housing or mortgage relief.

🐷 RSL Piggy Point:Even if mortgage rates dip temporarily due to global instability, long-term buyers should be cautious — uncertainty isn’t a discount, it’s a variable.

Neil’s Take 🎙

Neil Caron, Area Sales Manager at CMG Mortgage, shared this with ReadySetLoan™:

“When headlines talk war or conflict, people get nervous — and nervous people don’t usually make big financial decisions. But savvy buyers can find opportunity if they have expert guidance and a long-term plan. This isn’t the time to panic; it’s the time to be prepared.”

The RSL Perspective™

At ReadySetLoan™, we don’t just watch headlines — we help you interpret them. Whether rates drop in response to geopolitical fear or tick up due to energy price spikes, we’re here to help Connecticut buyers, sellers, and homeowners understand what it means for their next move.

If you're wondering whether now is still a good time to refinance, buy, or wait, don't guess — ask. We’ll help you cross the finish line with confidence.