Breaking news and soft inflation data on Wednesday put slight downward pressure on mortgage rates, but they remained remarkably steady, which suggests that, at least for now, markets are writing off recent developments as transitory.
Escalating trade tensions between the United States and China, a mixed March jobs report, and comments from Federal Open Market Committee members suggesting a more cautious path for interest rates all contributed to some market volatility last Thursday and Friday.
Breaking news and soft inflation data on Wednesday put slight downward pressure on mortgage rates, but they remained remarkably steady, which suggests that, at least for now, markets are writing off recent developments as transitory.
Several speeches by key FOMC officials early next week could provide more clarity on how voting members of the central bank’s interest-rate-setting committee view the state of the economy.
Rates could rise if there is no de-escalation of trade tensions, if military action in the Middle East flares up, or if potential leadership changes in Congress point to tighter fiscal policy. Loose fiscal policy has been one factor contributing to rising rates since the start of 2018.
