06/23/2025
Obviously the big news is the US bombing Iran. Typically, when we see a war the market reacts by fleeing to safety in the bond market which is good for rates. We have seen a little of that but not as much as might have been expected. The reason for that is concern over increasing oil prices. While we have seen oil go up slightly it hasn’t been as drastic as anticipated. For those reasons, we start the week off with rates slightly better than last week.. we will take the W!
If you follow along I have talked a lot about the 10 year chart. We are securely back in a positive channel which is good for rates. In fact, the 10 year treasury is currently at levels we haven’t seen since May 8th. What we haven’t quite seen yet is the mortgage secondary market, which really sets mortgage rates, giving those gains to rate sheets. This is pretty typical and as long as we stay at these levels we should see small improvements day by day as the secondary market gains trust in these new levels.