Mortgage rates¬†moved moderately¬†higher again higher¬†today, as global financial markets continued reacting to recent geopolitical flashpoints (like the French election, discussed yesterday). ¬†Markets are also moving in anticipation of future flashpoints (like tomorrow's tax reform announcement). ¬†In general, investors have piled back into riskier assets like stocks because the French election reduces long-term risks to the European Union. ¬†Investors previously were more willing to buy bonds--a safe haven asset frequently used to insulate investors from increased risk. ¬†
The prospects for tax reform have a similar effect in that they encourage investors to favor riskier assets at the expense of bonds. ¬†When demand for bonds decreases relative to supply, rates move higher....(read more)Forward this article via email:¬†¬†Send a copy of this story to someone you know that may want to read it.