Rates continue their upward trend

Happy Friday from Local Mortgage!

Rates continue to rise, now for the 5^th week in a row, we are now up to 6.375% for our best 30- year fixed conventional scenario. Rates are now at their highest point in the last 8 months. The widespread reaction to the Iran conflict has not been well received across financial markets with stock prices tumbling alongside rising treasury yields and mortgage rates.

Mortgage rates have experienced extreme volatility as markets have been heavily influenced by the latest headlines. Monday showed signs of hope as markets rallied on increased optimism of a ceasefire, but all positive movement was erased Thursday with a pretty sizable market sell-off as we approached the administration’s deadline for Iran to open the Strait of Hormuz. Bond markets were a little calmer Friday after that deadline was extended to April 6.

Looking ahead, next week promises to be another turbulent week. Markets will continue to be volatile until it’s clear whether the war is escalating or de-escalating. It will also be a heavy week for economic reports as we get employment information with the JOLTS report and consumer confidence on Tuesday, manufacturing data on Wednesday and the key employment report on Friday.

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