Mortgage rates fell for the first time in more than a month this week, with the average 30-year fixed-rate mortgage rate at 6.37% through Wednesday, down from 6.46% a week earlier. The drop came after the United States entered a ceasefire with Iran, calming some worries that the conflict would push oil prices and inflation higher.
The move was enough to give homebuyers a brief break. On Wednesday, the 10-year Treasury yield fell below 4.3% and stocks rallied, helping pull mortgages lower because they closely track Treasury moves. Spring is usually one of the busiest seasons for homebuyers, so even a small decline can matter when every fraction of a point changes monthly payments.
Kara Ng said the latest geopolitical shifts brought “a slight reprieve to mortgage rates,” but she said they remain well above February's lows. That warning landed quickly. By midday Thursday, Treasury yields and oil prices were ticking up again as markets reacted to concerns about the fragility of the agreement and a sticky February inflation reading.
Read Also: Refinance Rates Ease After Mortgage Rates Fall on Iran Ceasefire Relief
The result is a market still searching for direction. For borrowers, the easing offers a momentary opening, but the rebound in yields suggests mortgages are likely to stay tied to every turn in the ceasefire, energy markets and inflation data.
