Rising Tension With China

The ongoing dispute between China and America over a variety of topics took a new turn with America’s order that China close its consulate in Houston. Chinese officials threaten retaliation. Treasury prices have moved a bit higher and that has pushed the Ten-Year’s yield slightly below 0.60%. Equity futures point to a slightly weak opening.

Earlier, the Mortgage Bankers Association reported that, for the week ending July 17th, Mortgage Applications rose 4.1% after the prior week’s rise of 5.1%. Applications for new purchases rose 1.8% after falling 6.1% the week before while refi apps jumped 5.3% following the prior week’s bigger jump of 11.9%.

The price of gold is up about $17 to $1,859 while crude oil is slightly lower but still north of $41. The FHFA House Price Index and Existing Home Sales for June will be announced a little later this morning.