Here we go again: Treasury yields jump as Trump says Iran ceasefire ‘over’
For the mortgage market, that latest oil price surge could be significant because it risks putting upward pressure on inflation – raising the prospect of the Federal Reserve increasing interest rates to keep price growth under control.
Mortgage rates on the up – are further spikes ahead?
Last week, the 30-year fixed rate moved slightly higher, increasing to 6.58% according to the Mortgage Bankers Association’s (MBA) latest weekly mortgage applications survey. Overall applications were down by 2.2% from a week prior, including an adjustment for the July 4 long weekend.
The national housing market has failed to gather noteworthy momentum this year – and mortgage market commentators view the Iran war as one of the most prominent factors pushing potential buyers to the sidelines.
In April, Loan Factory chief executive officer Thuan Nguyen told Mortgage Professional America the market’s future “all depends” on Iran, with fears strengthening as the conflict rumbled on that rates could be headed toward the 7% mark.
That never materialized, with average rates hovering in the mid-sixes in recent weeks. But mortgage industry veterans including William Raveis Mortgage’s Melissa Cohn have also warned that the economic impact of the conflict would likely linger even if the ceasefire proved permanent.
