Mortgage rates receded slightly in the two days following President Donald Trump's confirmation of a deal with Iran, with the 30-year conforming average slipping 5 basis points to 6.73%, per HousingWire's latest data.
The modest decline comes as geopolitical tensions ease, though the move is relatively small in the context of a volatile rate environment. The rate drop follows weeks of uncertainty tied to the Iran conflict, which had pushed borrowing costs higher.
For buyers, the dip in rates offers a small reprieve on monthly payments, but affordability remains strained. At 6.73%, a $350,000 loan carries a monthly principal and interest payment of roughly $2,260, compared to under $1,800 when rates were at 3% two years ago.
Inventory levels continue to constrain the market, with many existing homeowners locked into lower rates and reluctant to sell. The slight rate decrease may bring some sidelined buyers back, but days on market remain elevated in slower segments.
Economists caution that the rate relief could be temporary if new geopolitical or economic pressures emerge. HousingWire suggests further declines depend on sustained stability in the Middle East and additional signals from the Federal Reserve.