Markets chill a bit on concerns of Greenland backlash

Markets chilled just a bit this week on concerns of foreign backlash from Greenland purchase.

Happy Friday from Local Mortgage!

Not a lot of movement during the short week, but we will end the week up slightly, back to 5.875% for our best 30-year fixed conventional scenario.

The week started Tuesday with the market’s reaction to President Trump’s proposal to purchase Greenland. In those comments, the President threatened to impose additional tariffs on countries that would oppose the acquisition. Investors fear that an economic conflict could cause foreign entities to sell off US assets, which could include US mortgage-backed securities.  Markets rebounded a bit Wednesday after Trump softened his tone, ruling out any military action.

Thursday’s release of November’s delayed CPI showed a 0.2% rise in CPI from October to November, but we already had December’s number, there was an insignificant market reaction. 

Next week will bring January’s FED meeting. There is basically a zero percent chance of a rate cut, but investors will be tuned in hoping for clues on future monetary policy.

Hope everyone has a great weekend! Stay warm and safe.