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According to Zillow's economic research director Aaron Terrazas, the U.S. economy is in the midst of repeating a pattern. Terrazas says geopolitical fears have once again tamped down mortgage rates.
Looking at interest rates, which fell to the lowest levels in a month in the last week of March, Terrazas posits that aspiring homebuyers in the U.S. are "indirect beneficiaries" of turbulent global politics. Citing financial instability, Brexit, and now anxiety over a global trade war, Zillow's Terrazas says such events "[prompt] a financial flight to safe assets and pushing mortgage rates downward."
Mortgage rates fell over the past week to their lowest levels in a month and are now below where they stood at the end of February. Beyond ever-present (and difficult to predict) geopolitical risks, markets are likely to watch for inflation data due Thursday as well as speeches by two Federal Open Market Committee voters early next week. Markets will be closed for the Good Friday holiday, which could temper volatility, although borrowers should expect conservative pricing going into the long holiday weekend.
