"The war in Iran is stoking inflation fears: A prolonged conflict could drive up prices across a range of commodities on a global level."
"Mortgage rates track the yield on the 10-year Treasury note, because mortgages and 10Y T-notes are investments that behave similarly."
"During times of economic uncertainty, the conventional wisdom is that the bond market plays a massive role in setting mortgage rates."
Mortgage rates have increased by about 40 basis points since February, with expectations for further rises in April. The conflict in Iran is contributing to inflation fears, as disruptions in oil supply can lead to higher prices globally. This situation impacts the bond market, which in turn affects mortgage rates, as they track the yield on the 10-year Treasury note. Economic uncertainty typically influences these trends, leading to higher mortgage rates.
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