Mortgage Rates Increase Along With Hopes of China Trade Dispute Resolution
Foreign affairs such as the trade dispute with China and Brexit can hit close to home, affecting even the housing market. Mortgage rates increased due to the potential resolution of the conflict with China as well as faith in the stock market. Still, the rate of mortgages is lower than it was at this point in 2018, according to Freddie Mac and the applications for mortgages fell as well.
Mortgage rates rose to their highest level in 12 weeks, according to the data released Thursday by Freddie Mac, with investors continuing to react to the possibility of a positive resolution to the ongoing trade dispute between the United States and China.
The 30-year fixed-rate average soared to 3.75 percent from 3.69 percent a week earlier, with an average 0.5 point. (Points are fees borrowers pay to a lender — beyond the interest rate — that amount to 1 percent of the loan.) The rate was 4.86 percent a year ago.
The 15-year fixed-rate average reached 3.18 percent with an average 0.5 point, up from 3.15 percent a week ago and 4.29 percent a year ago. The five-year adjustable rate average reached 3.4 percent with an average 0.3 point, up from 3.35 percent a week ago and 4.14 percent a year ago.
Earlier this month, President Trump announced a truce, with the United States calling off a planned tariff increase in exchange for China purchasing $50 billion in U.S. farm products.