Last week was dominated by U.S. President Donald Trump's announcements on tariffs. On Monday, he announced 25 percent levies on all steel and aluminum imports into the U.S. On Thursday, he signed a memorandum that tasked his administration with investigating current trade relations and proposing reciprocal tariffs on a country-specific basis. But the fact that the president did not immediately put into effect the tit-for-tat tariffs and was scant on details helped market sentiment.

We mention this because Orion's brokers, and your clients, are being barraged by a lot of news out of Washington DC. This news can create a lot of uncertainty, which in turn causes people to sometimes “hunker down” or put off making decisions. We totally understand. News of layoffs at the Veteran’s Administration, a work freeze at the Consumer Finance Protection Bureau, and moves toward privatizing Freddie Mac and Fannie Mae are garnering attention from lenders.

But brokers should help their clients should keep their eyes on the horizon and know that, for interest rates, a favorable producer inflation report for January on Thursday helped, as the components in it that feed directly into the Federal Reserve's favorite inflation gauge came in soft. It also helped overcome the shock provided by a hotter-than-expected consumer inflation report on Wednesday.

Brokers know that the Federal Reserve, nor the President, doesn’t set mortgage rates. But the same factors that influence our Federal Reserve in keeping our economy stable impact mortgages. Federal Reserve Chair Jerome Powell said last week that President Donald Trump’s calls for lower interest rates won’t lead the central bank to change its rate decisions. “People can be confident that we’ll continue to keep our heads down, do our work, and make our decisions based on what’s happening in the economy,” Powell said.

Last week Trump said sent out, “Interest rates should be lowered, something which would go hand in hand with upcoming tariffs!!!” Yet Powell indicated during a press conference last month that the Fed, after cutting its key rate three times late last year, would hold off on further cuts as it waited for evidence that inflation is moving closer to its 2 percent target. This could very well mean that mortgage rates will be around these levels for months to come.

We can expect “headline risk” to permeate the media from now on. These announcement sand rumors may move rates, and lending policies, or they may not. No one knows. But we will continue with our great service, wide-ranging products, and competitive rates regardless of the news that comes across the airwaves. And this will help your clients.

‍