This past week financial markets around the globe traded in a bit of a calm sideways pattern ahead of arguably the most important economic event of 2019 -- the US/China trade talks at the G20 meeting.
Depending on when you read this newsletter, the headlines may already be out as talks between President Trump and China's President Xi are to take place on Saturday, June 29th.
How the trade talks go could have a major impact on global economies and even determine whether the Fed cuts rates, which at the moment is widely expected to happen in late July.
So, if you are looking to buy a home or potentially refinance an existing one, it's hard to overstate the magnitude this event can have on rates for the foreseeable future.
At the moment we are watching the 10-Year Note yield hover near 2.00%, which has served as a psychological barrier preventing rates from moving lower. How the US/China talks go could very well determine which side of 2.00% the 10-Year Note trades.
Why is this important? Because if the 10-Year Note yield moves lower and beneath 2.00%, it will push Mortgage Bond prices higher and home loan rates lower still. The opposite is also true.
Bottom line: home loan rates are within .50% of the best rates ever and there is a very real chance we might see even lower rates in the very near future ... like next week.
Contact your Account Executive with questions.
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