China move could send US mortgages climbing

China move could send US mortgages climbing

China holds about $760 billion in U.S. Treasury bonds. Should it weaponize its holdings, Americans could face higher mortgage rates.

Adjustable-rate Mortgages (ARMs) Climb To Highest Origination Volume Share Since 2008 (Financial Crisis!)

ARMs?? Adjustable-rate mortgages (ARMs) have climbed to the highest origination volume share since 2008 as the yield curve steepens and bank lending demand picks up. The majority of ARM lending goes to high credit borrowers with jumbo-sized loans, which many banks see as a good fit to keep in their portfolios as they are seen to have relatively limited credit and interest-rate risk.

China Move Could Send US Mortgages Climbing

The deepening of President Donald Trump's trade war with China could push the country—the second-largest holder of U.S. debt—to dump its Treasury holdings, sending mortgage rates skyrocketing for millions of Americans.While some experts believe that such an escalation is unlikely to happen, China's President Xi Jinping has promised to "fight" the Trump administration's escalation of tariffs "to the end"—and there is a chance he might do so throu…