Mortgage Rates Edge Higher as Trade Tensions Ease

Mortgage rates trended higher over the past week, returning to highs last touched in late May and early June and continuing the upward trajectory of last week.

Trade tensions have put downward pressure on rates over the past two months, but some of those tensions were eased last Wednesday when President Trump and European Commission President Juncker struck a deal to avert a trade war. Strong second quarter GDP data, which was largely expected, also contributed to rates edging higher.

Today’s Federal Open Market Committee policy statement reinforced the strength of the economy, solidifying expectations for future rate hikes this year, including one likely in September. Markets will watch for July’s jobs data, due on Friday.