"The war in Iran, now in its ninth week, is still setting the tone. The war disrupted global oil supply, which pushes energy prices and inflation higher. Inflation doesn't just hit gas and grocery bills - it also spooks the bond market, which mortgage rates tend to follow."
"After the conflict began on Feb. 28, average 30-year fixed mortgage rates rose about a half percentage point, from the high-5% to the mid-6% range. Throughout April, though, mortgage rates have eased back into the low-6% range."
"As the Iran conflict drags on, markets aren't reacting as much to every headline (or social media post) anymore. Investors seem to have tuned out the noise of will-they-or-won't-they peace proposals."
"Today's mortgage rates are lower and less jumpy than they were last month. That gives buyers a window to lock in a more predictable rate during peak homebuying season."
The Federal Reserve's decision to maintain its benchmark interest rate is not expected to affect mortgage rates significantly. The ongoing war in Iran is influencing global oil supply and inflation, which in turn affects the bond market and mortgage rates. After an initial rise in mortgage rates following the conflict, rates have recently eased back. Buyers should focus on the underlying factors driving mortgage rates rather than just the rates themselves to better navigate the housing market.
Read at SFGATE
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