Stocks fell sharply yesterday as a trade war between the world’s largest economies intensified with China retaliating against President Donald Trump’s latest move.
The Chinese yuan sank to 7 per US Dollar yesterday which is an all-time-low, with the Chinese central bank blaming the depreciation on market forces and President Trump’s decision last week to extend tariffs on almost all Chinese imports. Mr. Trump responded on Twitter, accusing China of engaging in currency manipulation.
The average rate on the popular 30-year fixed mortgage hit 3.70%, the lowest in 3 years. That rate will likely dip even lower, as bond yields continue to fall. The drop last week meant that 8.2 million 30-year mortgage holders could likely qualify for a refinance and save at least 0.75% off of their current interest rate. While rates are now incredibly favorable for both refinance and home purchase, consumers still need to shop around for the best rate, and a full one-third of them are not, according to a new survey from Fannie Mae.
The yield curve in the bond market is giving the largest waring of an impending recession since 2007. Rates on 10-year notes sank to 1.74%, close to completely erasing the surge that followed President Donald Trump’s 2016 election. In early trading, they fetched as much as 32 basis points less than three-month bills, the most extreme yield-curve inversion since just before the 2008 crisis.
With Northwest Quadrant Wealth Management, I'm Tyler Simones.