I’m No Economist…
Boring Mortgage News
Peace Deal.
With what looks to be the end of the Iran war and a peace deal holding together, we are already seeing the effects. Oil prices have dropped below $75 a barrel from their April highs of $112.
Why is this important?
Dropping energy costs will help tamp down the inflation we’ve seen from this conflict.
Why is that important?
We’ve already seen the effects of the news from the peace deal in the 10-year treasury yield, which slipped beneath 4.5%.
Why is that important?
The 10-year treasury yield is indicative of what mortgage rates are going to do. A cooling of the 10-year treasury yield generally indicates a cooling of mortgage rates.
BUT I THOUGHT THE NEW FED CHAIR WAS GOING TO LOWER RATES…
Candidly, I was nervous about what the new Fed chair was going to do. I’m no economist (although I tried to get a minor in economics, but it was too boring), but a Fed rate cut too soon into rising inflation would spell absolute disaster for mortgage rates… and what did the new Fed chair and governors do?
Kept it flat.
What else did they say? Well, they might actually raise the fed rates to cool the economy.
A Love Letter to Jerome Powell
For a few years, everyone was saying, “He’s killing the economy with these high rates,” and so on and so forth. He kept speaking about a soft landing while everyone was screaming to lower the Fed rate. He held strong, keeping his eye on inflation and job reports. Our economy was running white hot, and he — along with the other governors — threw water on it to keep it from exploding. Through political pressure, public sentiment, and a DOJ investigation, Jerome Powell held the Fed steady.
This may be an unpopular opinion, and I could be wrong in saying this, but in my opinion:
History will look favorably on Jerome Powell.
Less Boring Mortgage News
While riding my bike in the woods and randomly running into my electrician, I noticed the average for the 30-year fixed rate started drifting towards the mid-6% range.
Keep in mind that this is a national average, and can change a bunch based on down payment, credit, property type, occupancy type, and program type. If you want to dive deeper, holler at me.
Source: HousingWire & Mortgage News Daily. This is not a commitment to lend and does not guarantee the availability of any particular product or interest rate. Rates/terms illustrated may not be available through BankSouth Mortgage.
Blog post date: June 22, 2026
