Mortgage Rates Continue to Track U.S.-China Talks

Mortgage rates fell this week, reversing a gradual upward trend to reach their lowest levels in two weeks.

Once again, it was the ongoing saga of U.S.-China trade talks that drove most of the market’s movements. The discussions have  shown signs of progress lately, which contributed to modest increases in bond yields and thus mortgage rates.

However, despite growing optimism and the tentative agreement of an initial deal, the talks failed to yield meaningful developments in recent weeks. Ambiguities regarding the tentative deal’s details have thrown a wrench into the proceedings and reinjected doubts among investors, driving them to safer assets and nudging mortgage rates down.

It’s likely that market movements will be modest heading into the Thanksgiving holiday, but the possibility of trade-related developments will keep investors on their toes.

What’s more, rates are likely to respond to key readings on manufacturing and consumer spending, both due in the next seven days.

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