Iran detente nudges mortgage rates down, but Fed hike risk looms

Mortgage rates edged lower to about 6.47% for a 30-year fixed as tensions with Iran eased, offering a brief reprieve for homebuyers, who appear willing to accept rates above 6% as the new norm; but the Federal Reserve signaled a possible rate hike later this year to combat inflation tied to the Middle East conflict, and stronger inflation data complicates any sustained decline in rates, even as housing demand remains resilient.