What would a war between the United States and Iran mean for mortgage rates?
Recently, there has been a lot of ongoing tensions in the Middle East. These tensions are pushing the stock futures lower and mortgage rates are also trending lower. Many economists call this a “flight to safety”. Meaning the amount of fear in the news both internationally and nationally is sending mortgage rates down.
Historically, war does not mean a boom for the lending and housing markets in the long-term. A conflict of that magnitude can be devastating to both the lives and the economies involved. Most people will not make a big purchase like a home.
“The major escalation of tension between Iran and the U.S. threatens oil supplies, threatens consumer and business sentiments, and therefore threatens the global economy,” Mohammed El-Erian, chief economic advisor Allianz.
As of this week, we are seeing bearish candlestick signs in the Mortgage Bond markets with prices at multi-year highs. Also, we will see jobs data come out and more on the China deal this week. It may be time to lock in your clients.
If you have any questions or concerns, please reach out to us. We are always here to discuss matters impacting the housing market.