US crude oil prices rose above $90 per barrel due to the conflict with Iran, while a weak February jobs report led to a dip in Treasury yields. The 10-year Treasury yield reached a 2026 peak of 4.75%, but mortgage rates have stayed below 7% thanks to favorable mortgage spreads. Economists anticipate mortgage rates will continue to hover between 6% and 6.5%, impacting the summer homebuying season despite a general decline in mortgage application activity.
US crude oil prices have surged past $90 per barrel, influenced by the ongoing conflict with Iran. Concurrently, a weaker-than-expected jobs report for February has caused Treasury yields to dip. The 10-year Treasury yield specifically reached a peak not seen since 2026, hitting 4.75%. Despite this rise in Treasury yields, mortgage rates have remained below the 7% threshold. This stability in mortgage rates is attributed to favorable mortgage spreads, offering some relief to the summer homebuying season. However, overall mortgage application activity has seen a decline. Economists predict that mortgage rates will likely persist in the 6% to 6.5% range in the near future.