Updated
Updated · WRAL News · Jun 18
US 30-Year Mortgage Rate Falls to 6.47% as Iran Truce Pushes 10-Year Yield to 4.44%
Updated
Updated · WRAL News · Jun 18

US 30-Year Mortgage Rate Falls to 6.47% as Iran Truce Pushes 10-Year Yield to 4.44%

3 articles · Updated · WRAL News · Jun 18

Summary

  • Freddie Mac said the average 30-year fixed mortgage rate slipped to 6.47% this week from 6.52%, while the 15-year rate edged down to 5.81% from 5.84%.
  • The drop tracked a retreat in Treasury yields after the US and Iran reached a tentative deal to end the war, reopen the Strait of Hormuz and let Iranian oil flow freely again.
  • The 10-year Treasury yield fell to 4.44% Thursday from 4.53% last week, though it remains above the 3.97% level seen in late February before the conflict began.
  • Mortgage rates are still below a year ago's 6.81%, but they have stayed mostly above 6% since late February, keeping many buyers sidelined even as existing-home sales and pending sales showed some recent improvement.

Insights

With the U.S.-Iran deal so fragile, is the mortgage rate drop a false dawn for aspiring homebuyers?
A fragile peace deal eases inflation pressure, but will this stop the Fed from raising interest rates again?