Brexit, Trade Talks Have Muted Impact on Mortgage Rates

Mortgage rates had a volatile few days following notable developments in both the ongoing Brexit and China trade pact discussions, but ultimately finished the week largely in line with where they began. The fact that mortgage rates haven’t taken off like a rocket in response to either or both of these developments speaks to the complexity of the two situations and the remaining work needed on both fronts.

Investors also appear to be learning the value of patience, and to wait for more concrete details on these topics – particularly the U.S.-China trade deal – before adjusting their positions. Rates typically don’t stray much from established levels in the weeks that end one year and begin another. So despite key readings on consumer spending and sentiment due this Friday, significant rate movements appear unlikely in the coming days.