Mortgage Rate Update: Middle East Tensions Keep Rates Under Pressure
What Did Rates Do This Week?
Mortgage rates ticked slightly higher this week despite a relatively quiet economic calendar with no major economic reports released.
The biggest influence on the mortgage rate market continues to be ongoing tensions in the Middle East. Uncertainty surrounding the conflict with Iran has kept investors focused on the potential impact to oil prices and inflation.
When concerns about inflation increase, bond markets can come under pressure, which can push mortgage rates higher. For now, continued geopolitical uncertainty is keeping rates volatile and limiting the potential for meaningful improvement.
What to Look Forward to Next Week
Next week, investors will continue watching developments in the Middle East alongside the latest economic data for clues about the direction of mortgage rates.
Markets will be looking for signs that inflation is cooling and that geopolitical tensions are easing. Any changes in oil prices or the broader economic outlook could quickly impact the bond market and mortgage rates.
Lock or Float Bias
Current Lock/Float Bias: Slight Lock
With mortgage rates edging higher and geopolitical uncertainty continuing to influence the market, borrowers closing soon may want to consider locking their rate.
Those with longer closing timelines may choose to float in hopes of improvement, but should be prepared for continued volatility as markets react to developments in the Middle East.
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