Mortgage rates fell slightly this week amid growing concerns surrounding trade talks between China and the U.S.

In a week light on economic data releases, the ongoing negotiations took center stage after President Trump threatened to raise tariffs on imported Chinese goods. The President’s message fanned the flames of a trade dispute that had previously appeared to be nearing its conclusion. Investors subsequently fled to a safe haven in the form of bonds, which pushed mortgage rates downward.

For months, expectations that the lengthy trade dispute would come to an amicable conclusion have buoyed Treasury yields – and mortgage rates – despite other forces nudging them downward. Hope remains that the two nations will soon reach a deal, but rates will remain vulnerable to trade-related news in the coming days either way, particularly in the absence of market-moving economic data releases.

Should the talks completely fall apart, and a more damaging global trade war ensue, this week’s mortgage rate declines will likely appear modest in retrospect.