Last Week's Mortgage Rate Recap: Rates slightly better 👍
Rates continued to creep slightly lower last week, despite it being a short week with little in the way of economic data. It is important to note though that most of the improvement is in rebate pricing, the credit your lender gives towards costs or a reduced cost for choosing a lower rate (less paid in points). Rates themselves have not moved much lower.
This Week's Mortgage Rate Forecast: Rates could improve further 👍
Mortgage rates have the potential to improve this week, particularly if current market trends persist. Concerns about tariffs and inflation have eased, allowing rates to stabilize after previous increases earlier in the year. However, after seeing rates improve the last couple of weeks, we could be due for a slight turnaround.
What's affecting rates this week:
- Inflation data: This week brings the Fed's favored gauge of inflation, the personal consumption expenditure report. Released on Friday, the data could help rates improve or worsen at the end of the week depending on if inflation increases.
- Market momentum: Markets have grown much less concerned over the effect of tariffs, and bond yields have improved because of it, which helps mortgage rates move lower over time.