Last Week's Mortgage Rate Recap: Rates slightly worse 👎
Mortgage rates moved higher last week, despite little economic data to give rates direction. Fed speakers continued to deliver a unified message that patience is paramount as the Fed waits to see how current tariff policy affects inflation and the economy.
This Week's Mortgage Rate Forecast: Rates could creep higher 👎
Although the week is starting out with some early improvements for rates after the holiday weekend, it is unlikely that rates improve much from here. The flip side is that rates are also unlikely to make any big moves higher.
What's affecting rates this week:
- The Fed: Markets will digest the minutes from the Fed's last meeting, and will be looking for signs that the Fed may be willing to cut rates in the second half of the year.
- Economic data: Consumers are more confident about the economy than last month's near 5-year low consumer confidence reading.
- Inflation: The Fed's favored gauge of inflation will be released on Friday, and is expected to show that inflation continues to move lower. However, concerns remain that prices may move higher soon as tariffs start to trickle down to the consumer level.