Markets improve late in the week after reaching 10 month high

Happy Friday from Local Mortgage!

Headlines about progress to end the conflict in the Middle East continued to be the primary driver for mortgage markets, while the economic data caused little reaction. After climbing to their highest levels since early July early in the week, mortgage rates reversed and ended slightly lower for the week. We will end the week at 6.375% for our best 30-year fixed Conventional scenario.

The first two days of the week were negative for mortgage markets as rates ended Tuesday up 0.75% since the start of the war. The back half of the week some much-needed relief for the mortgage markets after newswires suggested the U.S. and Iran were nearing a final draft of a peace agreement. Oil prices dropped sharply with Treasury yields in moving in tandem.

Looking ahead, attention will remain fixed on the conflict in the Middle East. Investors also will monitor comments from Fed officials about future monetary policy. For economic data, Consumer Confidence will come out on Tuesday. New Home Sales, Personal Income, and the PCE price index, the inflation indicator favored by the Fed, will be released on Thursday. Mortgage markets will be closed on Monday for Memorial Day.

Hope everyone has a great long weekend and thank you for reading.