“This stability is much needed for home sales, which have crested because of the multi-year run up in prices, tight affordable inventory and this year’s higher rates,” secondary market mortgage participant Freddie Mac noted in a blog.  “Going forward, the strong economy will support the housing market, but with affordability pressures mounting, further spikes in mortgage rates will lead to continued softening in home price growth.”

Tough Times in Turkey

The drop in mortgage rate products came as the Dow fell over 150 points with geopolitical issues in Turkey ravaging the U.S. capital markets. In the meantime, the Turkish lira continued to devalue as U.S. President Donald Trump ratcheted up tariffs on aluminum and steel amid growing dissention between the two countries.

Turkish President Recep Tayyip Erdogan went as far as asking citizens to convert their dollars and other foreign currencies, including gold to Turkish lira.

“Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks. This is a domestic and national struggle,” Erdogan said.

Related: Richmond Fed President Says Rates Must Keep Rising

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