Mortgage rates held mostly flat this week, but appear primed for more volatility in the coming days as markets digest news surrounding the presidential impeachment proceedings.
Markets remain keenly focused on trade-related news and this week, after a period of relative calm, U.S.-China negotiations once again drove the modest movements in rates. Unwelcome news about Chinese trade officials cutting their trip to the U.S. short and Monday's weak reading on the Eurozone's manufacturing sector sent bond yields, and mortgage rates, downward. The latter painted an ominous picture for the German economy – which now appears to be on the brink of a recession – and was the latest evidence that the trade talks are negatively affecting many more than just their two main players.
Of course, the biggest news of the week was the filing of an official impeachment inquiry against President Donald Trump. Bond yields initially fell on the news, but later rose after the readout of the President's conversation with President Zelensky of Ukraine was released. A prolonged political battle would likely mean increased volatility for mortgage rates.
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