Nationwide made cuts (Image: Mike Kemp, In Pictures via Getty Images)
Mortgage brokers say it has been a quieter-than-usual summer for the housing market, with many buyers and sellers pressing pause as mortgage rates continue to swing up and down. Mortgage rates have been yo-yoing for much of 2026 – even this week Nationwide cut rates by up to 0.19% on Monday, before Halifax today raised mortgage rates by up to 0.12%.
Brokers said that kind of volatility is making it harder for buyers to know when to commit. While demand for homes has not disappeared, brokers said that confidence has taken a knock, particularly among borrowers stretching themselves to buy.
They said many would-be movers were delaying decisions in the hope that mortgage rates settle, leaving the property market quieter than is typical for the height of summer. The Iran war, which began in late February, has led to global oil prices spiking and swap rates, that mortgages are priced off, rising.
Brent Crude oil has fallen to around $80 per barrel today, way below the height of $118 in late April, but still higher than $72 a month ago. Thomas George, director of Sussex-based estate agency Mansell McTaggart, said he had seen a quieter than normal summer this year.
He added: “Summer 2026 has been quieter than usual and the reason is simple: mortgage rate uncertainty has stalled the mid-market, namely transactions in the £300k–£550k range. Buyers in this price bracket are feeling it as they are typically the purchasers borrowing the most relative to their incomes.
“Even small rate increases can make a purchase unworkable for this type of borrower. On a positive note, the buyers who are still active right now are serious and ready to move. And they have options, as stock levels are at a 10-year high nationally. The message to sellers is straightforward: price for the market you’re in, not the one you remember.
Halifax increased its rates (Image: Getty)
“Do that, and your buyer is out there. Rates continue to wobble, with global volatility seeing some major lenders cut rates and others raise them this week. It’s a backdrop that can undermine sentiment unless the buyer is committed, which those in the market generally are at present.”
Jamie Elvin, director of London-based Strive Mortgages, said sellers needed to price realistically in this market.
He added: “Demand this summer has been weaker than previous years, but then that’s understandable given the yo-yoing in mortgage rates, wider economic uncertainty caused by the conflict in the Middle East and political upheaval domestically. But those buyers who are on the hunt are fully committed and determined to transact. What’s important is that sellers price realistically rather than believe their property is worth 10% more than it is.”
Stephen Perkins, managing director of Norwich-based Yellow Brick Mortgages, said confidence had been hit.
He added: “The biggest impact hasn’t been on demand, it’s been on confidence. People still need to move because life doesn’t stop for mortgage rates, but the recent volatility has made many buyers and sellers pause, question their timing and take longer to commit.
“Despite that, I’d describe the summer as quieter rather than weak. Demand hasn’t disappeared, it’s become more considered. As mortgage rates settle, confidence tends to return surprisingly quickly because many of those buyers were only ever pressing pause, not cancelling their plans.”
Michelle Lawson, director of Fareham-based Lawson Financial, said the government was to blame. She added: “There have been so many things mooted by the government that they have confused the public and also damaged consumer confidence. People will hold off if there are potentially positive enhancements to things such as stamp duty as it is such a large part of the associated costs.
“Join this with interest rates and soaring bills, spiralling costs of living, the unstable money markets, it is a recipe for disaster. The property market impacts so many other industries that some hope and positivity is needed to kick-start the housing sector and the rest will organically come together.
“Having countless housing ministers who have never prioritised the sector will come back and bite them. There is plenty of stock, arguably too much, lender innovation, but not enough movement.”
Ross Lacey, director and Independent Financial Adviser at Rayleigh-based Fairview Financial Management, said people were baulking at the rates compared to the start of the year.
He added: “The uncertainty is frustrating as many have a monthly mortgage payment figure in their minds and then within a matter of days this can be different. People looking at mortgage fixed rates around 3.5% at the start of the year are now, in some cases, reconsidering whether they still want to purchase properties that require as much borrowing.
“Naturally, the stress-tested rates that they would have needed to be able to afford would have been higher than what fixed rates are currently, but the payments being higher now have led to some reconsideration.”
Emma Jones, managing director of Runcorn-based Whenthebanksaysno.co.uk, said: “Ongoing rate volatility caused by events in the Middle East has seen many would-be buyers sit on their hands and wait until they feel more confident about what the future holds.”