Weekly Rate Update
Wednesday, June 27, 2019
Mortgage interest rates are based on the supply and demand of mortgage bonds. Bonds depict interest rate movement and they move in opposite directions. When bond prices decrease, interest rates increase. When bond prices increase, interest rates decrease.
What’s going on and why does it matter?
Mortgage bonds are continuing to hover near their 10-day moving average as world leaders begin arriving in Osaka, Japan for the G20 meeting. All eyes are on Presidents Trump and Xi and the mixed headlines surrounding US-China trade talks. As for today's economic calendar, the final Q1 GDP report came out in line with market expectations, while the PCE inflation numbers were slightly elevated.