Mortgage Rates Dip After Ceasefire is Announced

Mortgage rates dipped to 6.37%, ending a five-week climb after a tentative US-Iran cease-fire calmed oil markets and eased inflation fears. Rates still remain higher than they were in late February when they dipped below 6% before the start of the war. Economists note that while the decline is welcome, it is modest.

If the peace holds, falling oil prices could improve the inflation outlook and reduce the likelihood of a Federal Reserve rate hike, potentially pushing rates back towards 6%. Conversely, a breakdown in the truce would reignite market volatility and reverse recent rate declines. It seems like the conflict’s duration will be a key driver of mortgage borrowing costs for the remainder of this year.

So far, it has been a busy spring at RMC. Patrick and I have met with 10 people in the past few weeks who are getting preapproved to start shopping for a new home. So hopefully we will have some more good news next week, and rates will continue to improve.

Contact us today if you have any questions about the current housing market.