Since our last report, mortgage rates have remained steady. This past week had very little economic reports, and hence the reason for the bond market to remain flat.
On Thursday, global economic and trade-war concerns created a safe-haven move to bonds. Global economic concerns were reinforced with a dramatic downward revision in projected growth from the European Commission. The Commission projects euro zone growth decreasing to 1.3% during 2019 versus the 1.9% increase experienced in 2018. The markets also moved on Thursday after a White House economic advisor stated that U.S. and China were far away from a trade agreement. Additional tariffs on Chinese goods become effective March 1st if no agreement is reached.
Coupled with Brexit hanging over the European and Global markets, the markets here in the U.S are again fearing a trade war with China and an upcoming government shutdown, that this time could be quite serious. Depending on what happens with all three of these issues, we could see some very favorable rates in the coming months. Only time will tell.
The Altitude Group
REALTOR® | MCNE
REALTOR® | CNE