Could A Drop In Chinese Interest Rates Spark A Bond Rally In The U.S.?
By SCOTT KIMBLER Prices of single-family homes and rental costs continue to rise in the United States. But officials in China have been lowering interest rates and over the last few months, the Asian county has seen a drop in property price tags as well. Here in the U.S., many companies—including Bloomberg—are reacting by predicting a possible rally in 2022. Especially in the bond market. Bond prices have an inverse relationship with mortgage interest rates. As bond prices go up, mortgage interest rates go down and vice versa, according to an article on Rocket Mortgage’s website. “These sorts of events cause uncertainty,” said Elizabeth Rose of Mortgage 300 in Dallas, Texas. “Their (China) money is going to seek a better return, so we’ll potentially have more buying in the…