Mortgage Rates Pop on U.S.-China Trade Talks

Mortgage rates popped this week after weeks of steady declines, rising sharply to their highest levels in more than a month.

Even in a busy week for economic data, it was once again trade discussions between the U.S. and China that dictated rates’ movements. Optimism that recent signs of progress will result in the abandonment of proposed tariffs, due to be imposed October 1, pushed bond yields higher, and mortgage rates followed in tow. A heavy dose of generally strong economic data also contributed to a rebound in mortgage rates, particularly better-than-expected wage growth figures and an encouraging read on the services sector.

The strength of the consumer continues to propel the economy, so all eyes will be on the August Retail Sales report on Friday. A positive reading would inject the economy with even more optimism, and push rates even higher, ahead of next week’s Fed meeting.

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