Last Week's Mortgage Rate Recap: Rates slightly worse 👎
Mortgage rates actually crept to the highest levels midweek despite better than expected data showing inflation continues to cool. Rates rallied a bit to end the week, improving from the worst levels, but still ended the week slightly worse.
This Week's Mortgage Rate Forecast: Rates could creep higher 👎
Rates moved higher throughout last Friday, and with a light week for economic data, we could see them continue to drift up. Markets have lowered expectations to just two Fed rate cuts this year and are feeling more upbeat about the economy thanks to new trade deal announcements. That optimism makes it unlikely mortgage rates will drop much, if at all, from here.
What's affecting rates this week:
- Fed speakers: There are a plethora of Fed officials that will be out speaking this week. Although they are unlikely to say much that will rattle markets and affect mortgage rates, it is possible markets will look to them for direction.
- Memorial Day: Markets will close early on Friday at 2pm ET and will be closed Monday. Most lenders will tend to price more conservatively on a holiday weekend, meaning rates may be slightly worse than they normally would be based on market conditions.