Last Week's Mortgage Rate Recap: Rates unchanged 👍
Other than some small day-to-day movements, rates were basically unchanged last week. Despite concerns that the Trump administration's implementation of tariffs would drive inflation, there are no signs of that yet as consumer prices rose at the slowest pace in four months. Lower inflation than was forecast helped keep mortgage rates steady for the week.
This Week's Mortgage Rate Forecast: Rates could be volatile ⚠️
Although this week lacks significant economic data, the Fed meeting and Fed Chair Powell's press conference will take center stage. While a policy rate change is unlikely, Fed members will provide forecasts on future rate movements. The outcome of the meeting could lead to volatility in mortgage rates.
What's affecting rates this week:
- The Fed: Markets are looking for assurances that the Fed will take action and cut its policy rate if signs of economic slowdown or labor market weakness emerge. However, if Powell and the Fed don't assure markets, we could see rates creep higher to end the week.
- Fed Chair Powell's Press Conference: Powell will hold a press conference following the Fed meeting, which often leads to market volatility and potential rate fluctuations.