Mortgage Rates Only Modestly Higher After Tariff News

Mortgage rates were very nearly unchanged today, although the average lender was just slightly higher.  Investors reacted to news over the weekend that the US/China tariff deadline would be extended.  While that doesn’t have anything to do with mortgage rates, it set market forces in motion that created the modest, indirect effect.
The looming tariff deadline had been a source of uncertainty for markets.  All other things being equal, uncertainty tends to promote some safe-haven buying in bonds and some weakness in stocks.  When investors are buying more bonds, it helps push rates lower (or keep them from going higher).  Of course, this uncertainty trade must be balanced against a variety of other considerations for investors.  Moreover, the news in question wasn’t a solution to the trade negotiations–just a delay.  As such, it didn’t have huge repercussions for markets….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed