For the week of May 6, 2024

Last Week's Mortgage Rate Recap: Rates moved lower 👍
Mortgage rates improved last week because markets grew more optimistic that the Fed was still committed to cutting rates later in the year despite inflation not falling much this year. Rates started improving after the Fed meeting on Wednesday when the Fed kept its policy rate unchanged and Fed Chair Powell made it clear that policy rate hikes were not yet on the table. Rates continued to improve through Friday's jobs data which showed the first clear sign of a softening labor market.

This Week's Mortgage Rate Forecast: Rates not likely to change much 👍
This week is not likely to bring about much movement for rates after last week's big moves. Mortgage rates are now back to reflecting two Fed rate cuts by the end of the year, and traders will be waiting to see what next week's inflation data shows.

What's affecting rates this week:
- Economic data: There is little economic data this week to affect mortgage rates, but some Treasury auctions this week could have a small effect, especially Wednesday's 10yr auction.
- Fed speakers: Fed members will be out speaking this week, and will likely reinforce the message that the Fed needs to hold rates steady until inflation shows signs of moving lower.