For consumers who locked into refi’s or home loans upon news of the Fed’s .25% drop in the benchmark rate on July 31, it was a bit of a disappointing week. The smug confidence that their strategic timing locked in a rate at the lowest possible point turned to confusion as they watched rates continue to slide for the next week. How could this happen? What did they miss? While they could not possibly have planned for it, Trump’s announcement of the Chinese tariffs sent investors scrambling to move money out of the stock market to the safety of bonds. And as bond prices rose, interest rates declined. At the end of the day, it was this unexpected news that had a more significant impact on interest rate movement. Predicting interest rates moves is a tricky business as they depend on the expectations of investors driven by a wide range of economic news and reports. And just when you think you’ve got it all figured out a surprise announcement or an unanticipated event takes hold of the financial markets and away we go.


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Sothebys International Realty
9255 Sunset Blvd.
West Hollywood, CA 90069


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