Mortgage Rates Largely Shrug Off Jobs Report, Trade News
Significant economic data releases and major geopolitical headlines failed to substantially alter investor behavior, leaving mortgage rates to move only within a narrow range and end the week slightly lower. December’s jobs and inflation data both fell short of industry expectations, pushing mortgage rates down after two days of modest upward movement.
Elsewhere, Wednesday’s signing of an initial trade deal between China and the U.S. – a major development in what has been the most impactful story in bond markets over the last several months – prompted only a small response from investors that are otherwise cautiously digesting the news. The fact that many tariffs will remain in place illustrates the distance that still remains between the two nations and that will need to be covered in order to come to an enduring agreement.
It’s been a stable start to 2020, with mortgage rates barely budging for the first 2+ weeks of the year and remaining near multi-year lows. That could change with the Thursday release of December’s retail sales data: If the figures exceed expectations, a return to upward momentum could be in store for mortgage rates.
