The average 30-year fixed-rate mortgage (FRM) fell for a third consecutive week, tallying at 6.23% as of April 23, according to Freddie Mac (FMCC). While still above the pre-war rate of 5.98%, borrowing costs eased after the U.S. and Iran agreed to a ceasefire.
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New trading tool for QQQ bulls“Rates currently stand at their lowest level in the last three spring homebuying seasons,” said Sam Khater, Freddie Mac’s Chief Economist. “This improvement, coupled with a pickup in purchase applications and refinance activity, as well as an increase in monthly pending home sales, underscores signs of improving momentum in the market.”
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Homebuilder stocks, such as iShares U.S. Home Construction ETF (ITB), D.R. Horton (DHI), and PulteGroup (PHM), are trading higher on the news.
However, negotiations between the U.S. and Iran remain stalled, with any escalation likely to push oil prices and inflation higher. Rising inflation could drive the 10-year Treasury yield upward, which the 30-year FRM tends to closely track.