Oil has surrendered its gains from the U.S.-Iran war and mortgage rates are starting to follow suit

Oil prices, which initially spiked due to tensions between the U.S. and Iran, have now given up their gains, leading to a decline in bond yields as the inflation premium shrinks. This reduction in bond yields is causing mortgage rates to drop as well, following suit. This shift is significant as it impacts home buying affordability, making it easier for potential buyers to secure loans. The trend suggests that global geopolitical tensions might have a less immediate impact on everyday financial costs than previously feared.