Big Jump in Mortgage Rates This Week

Mortgage rates moved higher from Wednesday through the end of the week. Thursday and Friday were especially abrupt as financial markets hurried to get in position for a potential US/China trade announcement. What does trade have to do with the mortgage market? Quite a lot actually! Tariffs and general trade uncertainty have been some of the biggest driving forces behind 2019's huge drop in rates. Downbeat economic data and eroding business confidence led investors to put more money into safer havens like the bond market. When demand for bonds increases, bond prices move higher and bond yields (aka "rates") move lower. The economic uncertainty also played a key role in forcing the Federal Reserve to shift its stance on rates early in the year. While the Fed doesn't control mortgage rates directly...(read more)

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