• Grey Facebook Icon
  • Grey Twitter Icon
Subscribe

 Stay updated on the latest news, tips, and event info in the mortgage industry. 

© American Business Media, LLC.

U.S.-Iran Tensions Could Cause Issues For The Mortgage Industry

January 6, 2020

Tensions between the U.S. and Iran are high following the killing of a top Iranian military leader. While interest rates are currently down again, the mortgage industry as a whole could feel some pretty big impacts should tensions boil over.

 

"An increase in competition for bonds such as mortgage-backed securities means investors have to accept lower returns, which results in cheaper rates for home loans. The U.S. 10-year Treasury note, which acts as a loose benchmark for mortgage rates, sank on Friday," according to HousingWire.

 

"Even if mortgage rates stay low, or head lower, a war with Iran wouldn’t be a boon for the lending and housing markets long-term."

 

The threat of war could have potential buyers holding off on larger purchases like a home. Therefore, the need for a mortgage would be significantly low all around. 
 

Buyers would be pinching their pockets as expenses for everyday necessities such as gas would also increase. 

 

"If it becomes expensive, if the government is borrowing more and more money, that would mean we’d see higher mortgage rates," said Mark Goldman, a loan officer with C2 Financial Corp. based in San Diego, according to HW.

 

To learn more about the potential impacts that a war would have on the mortgage industry, click on the image above

 

 

Share on Facebook
Share on Twitter
Please reload

Recent Posts

Please reload

Featured Posts

Gateway First Bank Expands With 34 New Mortgages Centers Across The Country

January 8, 2020

1/8
Please reload

Follow Us

  • Grey Facebook Icon
  • Grey Twitter Icon