Today’s leading tier 30yr fixed rate was 6.54% for the average lending institution. You ‘d have to go back to May 14th’s reading of 6.52% to see anything lower. The latest enhancement follows another moderate drop in oil rates and bond yields as worldwide markets absorb the U.S./ Iran peace offer.
There’s still some threat that the offer does not take place as is currently anticipated. If those risks materialize, rates might push back up towards current highs. But if whatever goes according to strategy (or near to it), the bond market may continue pricing in the expected effect on oil prices.
The only warning is that some experts believe oil costs have already gotten ahead of themselves in that regard. If those experts are right, it might limit any extra momentum toward lower rates till peace is on more strong footing.
Tomorrow brings the next Fed rate statement. Markets predict absolutely no possibility of a hike or a cut, however will nevertheless be taking notice of brand-new Fed Chair Warsh’s first press conference.