Uncertainty with trade keeps mortgage rates from rising

With no economic reports this week, the bond market is focused on geopolitical issues.  Trade talks with China take the main stage. Until the trade/tariff negotiations are more settled, rates have some support to stay at current levels just due to the uncertainty the markets have on the ultimate outcome. 

Yesterday there were some feathers ruffled after the president spoke out for a second time on his disapproval of the Fed rate hikes; stating it will slow economic growth.  It will be important for the Fed to show that they are indeed independent of politics influencing decisions; so I’m not sure it was a good move to call their bluff.  

This week the annual central bank conference is being held in Jacksonhole Wyoming.  This conference will be watched for more indications from the Fed on the direction of the economy and future rate hikes.  Barring anything interesting from the summit, there is not much more news that will impact rates this week.  Look for more of the same.

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