Talks about a war between the U.S. and Iran has the world on edge. While we certainly hope for a peaceful outcome, we want to take a minute to explore what the implications of war are on mortgage rates and your lending business.
The first thing that comes to mind is how this affects the attitude of potential buyers. With so much uncertainty, we can expect potential homebuyers to feel the same –uncertain. And when it comes to making significant purchases, doubt makes shoppers tap the brakes.
What Will A War With Iran Do To Mortgage Rates?
Mortgage rates are likely to drop. This trend is expected because of the fact that mortgage rates are attached to the 10-year Treasury bond market. So when bonds are doing well, we can expect a drop in mortgage rates.
So while buyers may feel hesitant, dropping rates will likely lure current owners to refinance. Considering that we’re already on the low-side of the scale, a huge drop is not expected. However, the savings potential may be compelling enough to increase your refi clientele