Mortgage rates drifted slightly lower this week as fresh trade tensions rattled the global bond markets.
The average 30-year mortgage rate was 6.27% through Wednesday, down from 6.3% a week earlier, according to Freddie Mac data. The average 15-year mortgage rate was 5.52%, from 5.53%.
The 10-year Treasury yield, which mortgage rates closely track, has been volatile in recent days as investors weigh the implications of the ongoing trade dispute between the US and China. On Friday, Trump said the US would impose an additional 100% tariff on Chinese goods starting on Nov. 1. Later, in a Truth Social post, he suggested a possible de-escalation, saying, “Don’t worry about China, it will all be fine!”
Learn more: How does the 10-year Treasury yield affect your finances?
Meanwhile, several economic data releases that can influence mortgage rates have been delayed due to the government shutdown. September’s Consumer Price Index report, originally scheduled to be released on Wednesday, will now be published next week.
“The ongoing government shutdown has delayed several major economic data releases, which may have contributed to the narrow range for mortgage rate movements in recent weeks,” Kara Ng, senior economist at Zillow Home Loans, said in a statement.
Although mortgage rates are holding steady near year-to-date lows, home sales have stayed slow this fall. Mortgage applications to purchase a home dropped 3% through Friday compared to a week earlier, while refinancings were down 1%, according to Mortgage Bankers Association data.
“Continued economic uncertainty, including the effects of the ongoing government shutdown, was likely behind the declines in purchase and refinance applications,” MBA President and CEO Bob Broeksmit said in a statement.
Learn more: 8 strategies for getting the lowest mortgage rates right now
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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