Mortgage rates surged on Wednesday (yesterday) after reports recommended a prolonged blockade of the Strait of Hormuz. As has actually held true for most of the previous 2 months, rate of interest movement was clearly correlated with oil costs.
Now today, both are returning in the other instructions though not for reasons that are as obvious as yesterday’s. The rally started just after 2am ET with both oil costs and bond yields dropping in show. Lower bond yields imply lower rates, all else equal.
After hitting 6.50% for top-tier 30yr fixed rates, the average loan provider is pull back to 6.45– roughly where they were the other day early morning before a round of mid-day increases in the afternoon.