It’s a fluid situation in monetary markets on Wednesday. The 2-week ceasefire in the Iran war caused a huge response last night, however the benefit to the bond market (bonds determine rates) has actually been significantly wiped out throughout domestic hours.
If we measure the turnaround versus yesterday’s closing levels at 5pm ET, the reversal is nearly total. However bonds were currently rallying in the afternoon due to expectations for the main ceasefire news. All that to say, we’re still in noticeably better shape than we were mid-day yesterday, but the general enhancement is smaller sized than the majority of debtors would anticipate.
In fact, the typical top-tier 30yr fixed rate is simply hardly at the low end of April’s range at 6.40% vs the previous low of 6.41% on April 2nd. Earlier today, it was as low as 6.38%, however home mortgage lenders made mid-day modifications in reaction to bond market deterioration.