Despite being on another continent, China dramatically impacts the United States from the products we use to the mortgage rates we see for houses. The country’s relationship with the United States sent mortgage rates on a rollercoaster ride this past week with the rates plummeting and rising with the hopes of a beneficial resolution.
It’s been a tumultuous seven days, with mortgage rates ultimately settling near three-month highs.
Once again, the driving force behind these movements were trade discussions between the U.S. and China. Doubts surrounding the countries’ tentative, preliminary October pact pushed bond yields down sharply on Thursday, sending mortgage rates on their steepest one-day decline in months. But these rate reductions were almost entirely reversed by Tuesday, after newfound optimism surrounding the talks – specifically, reports that both sides were considering rolling back some tariffs – propelled rates to their highest level since early August.
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