Last Week's Mortgage Rate Recap: Rates worse 👎
Mortgage rates held steady early in the week but slipped on Friday after the BLS jobs report showed the labor market is still strong, making a June Fed rate cut look unlikely. Rates usually fall when the economy shows signs of weakness and rise when the data points to strength, as we saw last week.
This Week's Mortgage Rate Forecast: Rates could move higher 👎
This week, mortgage rates will take their cues from the Fed meeting and Fed Chair Jerome Powell's press conference. Given the recent strength in economic and labor data, it is unlikely the Fed will say anything that helps rates improve, but it is still possible.
What's affecting rates this week:
- The Fed: Mortgage rates are not directly set by the Fed, but they are heavily influenced by what the Fed does and says. Right now, markets are watching closely for any signs that the Fed may cut its policy rate in the future to support the economy as tariff-related slowdowns continue. Mortgage rates could be volatile around the Fed meeting and Chair Powell’s press conference.
- Trade Tensions: Markets have become less rattled by tariffs and trade war headlines lately, which has helped mortgage rates recover from the highs we saw a few weeks ago.