Average mortgage rates on Wednesday erased Tuesday’s jump to a 9-month high of 6.75%, slipping back below Monday afternoon’s levels.
Shortly after 10 a.m. ET, newswires reported the U.S. and Iran were nearing a final draft of a peace agreement, prompting a swift market reversal.
Oil prices dropped sharply and Treasury yields fell with them; because mortgage pricing tracks mortgage-backed bonds, lower yields quickly pulled mortgage rates down.
Monday’s rates were still among the highest in months, but the rebound suggests mortgage costs could retreat further if the war is formally brought to an end.
With peace talks reportedly stalled, is the sudden drop in mortgage rates built on false hope?
Beyond a peace deal, can the global economy recover from the conflict's deep and lasting damage?