Mortgage rates closed the week at their lowest levels in over a month, but fell less than bond market signals suggested — with rate direction heading into the week ahead still driven by geopolitical factors, particularly the Iran war and the Strait of Hormuz.
April brought calmer conditions for mortgage rates compared to March’s steep climb, with the average lender ending the week slightly lower. The Iran war continues to be the primary market driver through its impact on oil prices and inflation expectations.
Mortgage rates pulled back from March highs this week, declining roughly 0.23% from their peak, as geopolitical tensions eased and stronger-than-expected jobs data supported bond markets. Rates remain elevated compared to late February, but the week offered cautious optimism.
