Fears of Economic Downturn Dampen Mortgage Rates
Mortgage rates fell this week, as a slew of weak economic data stoked fears of an economic slowdown and pushed investors to safer assets.
After two weeks of consistent increases in mid-September, rates spent the last seven days retreating to their lowest level in nearly a month, bowing to many of the same pressures that have consistently placed downward pressure on them for the better part of this year: Lackluster economic reports that highlighted the risks of continued trade tensions between the U.S. and China. Friday’s disappointing consumer spending release and Tuesday’s report on manufacturing activity (which hit a 10-year low) were the most impactful.
With September’s jobs report due Friday, markets remain on edge, which will likely bring more significant rate swings.
