Mortgage rates fell further over the last seven days, reaching fresh three-year lows after manufacturing data confirmed that uncertainty around the globe is directly affecting the U.S. economy.
Rates fell after a survey of manufacturers showed Tuesday that the U.S. manufacturing sector contracted for the first time in more than three years. The contraction was the latest sign that the U.S.-China trade war is doing real damage to the economy – indeed, most survey respondents noted that slowing global trade is forcing them to limit their output.
Looking ahead, more turbulence for mortgage rates is likely to come, as the markets digest major developments emerging from Hong Kong and the U.K., as well as the August jobs report, which is slated for Friday. The labor market has been a pillar of strength for the economy for many months, so a weak report would surely alarm investors and further depress already-low mortgage rates.