Mortgage Rates Hit 2-Week Lows as Peace Deal Hopes Drive Bond Rally

Mortgage rates closed Thursday at 6.59%, the lowest in nearly two weeks. UMBS 5.0 finished at 98.31, up 26 basis points from Wednesday's close. The move came in two waves: a softer-than-expected April PCE print (0.2% monthly vs 0.3% forecast) helped bonds recover early weakness, then Iran peace deal headlines drove a sharp mid-morning rally that held through the close. The 10-year Treasury ended at 4.450%. Lenders repriced positively during the afternoon.