Home mortgage rates have moved higher at a moderate speed over the previous 2 days as tensions between The U.S. and Iran see a renewal. As far as the underlying bond market is worried, most of the damage was done the other day. But today’s news included emphasis when Trump stated the ceasefire to be over.
Rates are based on bonds, but home loan lending institutions choose to set rates when per day and just change them if bonds make a huge enough intraday relocation. That indicated the average lender needed to play some catch-up with bond market motion today.
All that to say that bonds didn’t have nearly as rough of a day today although mortgage rates rose just a bit more than they did yesterday. Maybe that provides some hint that the underlying market might be reaching some sort of encouraging ceiling, but it truly depends upon exactly how much the war re-escalates.
The typical top-tier 30yr fixed rate is back up to 6.68%, matching its second greatest level in more than 10 months. May 19th’s level of 6.75% is the main 10-month high.