Trade News Drives Stock Prices Higher

Stocks are climbing higher once again this morning, following news that President Trump is giving China more time to finalize a trade agreement before slapping the planned round of tariffs against products imported from China into the United States. Stock investors clearly see this as a step in the right direction, so investors are pouring money into the stock market. This is pulling money out of the bond market, which is adding upward pressure to mortgage interest rates. However, since bond prices remain trading within the same sideways channel that has held rates stable, there is no reason to panic at the moment. If prices don’t break beneath the floor of support, rates should maintain within a tight range.


Today is a quiet one for scheduled economic reports. However, the news wires heat up as the week progresses. The week’s news will be highlighted by Inflation, GDP, Housing and Fed President Jerome Powell’s Speeches to the House and Senate. If inflation numbers continue to show falling numbers, and GDP shows a shrinking economy, we could see rates improve. However, we have equal risk on the opposite side as well. We will keep you posted and let you know how the week turns out.


Given the lackluster market, we will maintain a locking bias.

Get your custom rate quote in 30 seconds

See your customized rate and fee options without sharing any personal information

See Purchase Rates See Refi Rates

Additional Articles

Still Need Help?