Mortgage rates ease for second week but still top year-ago levels
The principal driver behind the year’s rate surge has been the US-Iran conflict, which began in late February and sent crude oil prices higher, stoking sustained inflation expectations.
Long-term bond yields, which mortgage rates generally track, moved accordingly. As of midday Thursday, the 10-year US Treasury yield stood at 4.71%, compared with 3.97% before the conflict began.
In a move aimed at easing that pressure, the US Treasury Department announced Wednesday it would at least double the volume of government bonds it plans to buy back over the coming months.
The announcement helped pull yields lower after the 10-year note had climbed to its highest level in more than a year.
What the backdrop means for brokers
For mortgage professionals advising clients on timing, the two-week pullback may support near-term buyer confidence, but the broader context is difficult to spin positively.
