The article discusses the implications of Middle East conflicts on the interest rates in Europe, particularly focusing on the Euribor. There is significant uncertainty in the interest rate market, primarily influenced by fluctuations in oil prices. While there were previous expectations that the European Central Bank might lower interest rates this year, the market now anticipates a risk of a slight increase, potentially up to 0.25 percentage points. If oil prices remain elevated in the long term, it could lead to increasing inflation and prompt the central bank to intervene with interest adjustments.

SEB Bank assesses that the tensions originated from the conflict are likely to remain short-term, predicting a recovery in oil supply and a subsequent decrease in prices. Therefore, they expect that any changes in interest rates will have a modest effect on homeowners. The article emphasizes that although movements in Euribor may cause uncertainty, the current situation does not indicate a drastic interest shock similar to what was experienced in 2023.

Furthermore, it notes that there have been no significant shifts in current clients' interest rate choices and that prospective homeowners are still opting for similar terms when entering new mortgage agreements. This stability, despite regional tensions, reflects a cautious yet optimistic outlook from financial institutions regarding the housing market and borrowing conditions.