Mortgage Rates Slide as Risky Assets Viewed as Risky Business

Mortgage rates fell again this week, as ongoing trade tensions between the U.S. and China pushed rates to their lowest levels in more than a month.

In another week light on impactful economic data releases, the majority of market movements were tied to headlines surrounding the trade conflict between the world’s two largest economies. Rates were buoyed, at times, by assertions that the disagreement could be resolved in the next couple of months. In general, however, the ongoing tensions have kept risky assets under pressure, pushing mortgage rates down as markets seek out the safety of Treasurys.

This flight to safer assets accelerated on Wednesday after industrial production and retail sales data from both the U.S. and China failed to meet analysts’ expectations. The combination of reports exacerbated worries that the newly-intensified trade conflict will stunt the growth of the global economy, which was recently showing signs of strength.

Trade-related headlines should continue to dominate market movements in the coming days. Friday’s release of the consumer sentiment data will offer markets a glimpse of how the public has responded to these recent developments.