Last Week's Mortgage Rate Recap: Rates moved higher 👎
Although mortgage rates ended the week higher overall, there was reason to celebrate on Friday as the outlook improved significantly. After steadily climbing earlier in the week, rates fell on Friday amid growing market concerns over upcoming tariffs and labor market data.
This Week's Mortgage Rate Forecast: Rates could be volatile ⚠️
While early signs suggest mortgage rates may improve this week, that could change quickly depending on how markets respond to tariffs and labor market data. If rates do improve, we might see some of the lowest rates of the year. However, if sentiment shifts later in the week, it could push rates back to last week's highs.
What's affecting rates this week:
- Tariffs: Markets are growing increasingly concerned that tariffs expected to be implemented this week could lead to stagflation—a scenario where inflation rises while economic growth slows. As a result, investors are moving toward safer assets like bonds, which could help improve mortgage rates.
- Jobs data: This week brings reports on unemployment, job creation, and wages. Tuesday’s JOLTS report may impact rates, but Friday’s BLS jobs data is the key event and could drive mortgage rate volatility.