Mortgage Rates Dip to 6.37% on Iran Ceasefire
Why it matters: Mortgage rates fell to 6.37%, offering temporary relief for homebuyers in the busy spring season.
- Mortgage rates fell for the first time in over a month, with the average 30-year fixed-rate mortgage at 6.37% (Freddie Mac) down from 6.46% a week prior.
- The drop in rates was primarily driven by a U.S.-Iran ceasefire, which eased concerns about oil prices and inflation, causing the 10-year Treasury yield to fall below 4.3%.
- Zillow senior economist Kara Ng noted that while recent geopolitical developments brought a "slight reprieve," rates remain "well above February's lows."
- Current Zillow data shows the 30-year fixed mortgage rate at 6.10% and the 30-year fixed refinance rate at 6.21%, but these figures are already subject to upward pressure.
- Treasury yields and oil prices were ticking up again as of midday Thursday, signaling potential short-lived relief due to renewed concerns over the ceasefire's fragility and February inflation.
Mortgage rates saw their first decline in over a month, with the average 30-year fixed-rate mortgage falling to 6.37% according to Freddie Mac, largely attributed to a U.S.-Iran ceasefire easing inflation concerns. However, this relief may be temporary as Treasury yields and oil prices are already ticking up again due to renewed doubts about the agreement's stability and sticky February inflation data.
