Mortgage Rates Reach Three Month High, But Will It Last?
Homeowners trying to buy a house might want to wait. Mortgage rates this week rose to a three month high as geopolitical tensions surrounding Brexit and the trade conflicts with China reduced to a simmer. But the higher rates may not last as the government moves to cut federal funds rate again this year.
Mortgage rates rose to three-month highs this week on encouraging geopolitical developments, but will likely be drawn back after the Federal Reserve’s third rate cut of 2019.
Even with a substantial dose of economic data and news over the past seven days, geopolitical developments once again had the greatest impact on rates. Easing concerns surrounding Brexit and the U.S.-China trade tensions, the two major geopolitical stories of the past year, pushed mortgage rates higher on Monday.