Mortgage Rates Fall to 6.54% as Trump Announces US-Iran Strait Deal

3 articles · Updated · abcnews.com · Jun 17

The average 30-year fixed mortgage rate fell to 6.54%, its lowest in more than a month, after hopes for an Iran-war resolution spread through markets.
Trump said the U.S. and Iran reached a deal to reopen the Strait of Hormuz, helping push down oil prices and Treasury yields that heavily influence mortgage borrowing costs.
The drop partly reverses a war-driven run-up that took rates to 6.68% in mid-May, though they remain well above the sub-6% level seen before the late-February conflict.
High borrowing costs and pricier goods have sidelined buyers and worsened the housing market's lock-in effect; nearly 5% of listings were delisted in May, a record for that month in Realtor.com data since 2022.
A durable peace could further ease inflation pressure and lift housing supply if lower rates persuade owners to relist homes instead of holding onto cheaper existing mortgages.