Last Week's Mortgage Rate Recap: Rates unchanged 👍
Although rates did move slightly from day-to-day, the moves were small and mortgage rates ended the week basically unchanged. Rates did improve slightly after the Fed meeting, where the Fed left its policy rate unchanged and acknowledged uncertainty ahead, noting it’s keeping a close eye on both inflation and the labor market.
This Week's Mortgage Rate Forecast: Rates could creep higher 👎
This week has already seen mortgage rates react to news of a temporary trade deal with China, and will see rates react to inflation data and other lesser economic reports. Rates are unlikely to make any big moves higher or lower unless there is a big surprise in the inflation data, but rates may still end the week worse if traders continue to be concerned about inflation despite the new temporarily lowered tariffs on China.
What's affecting rates this week:
- Inflation: Both consumer and wholesale inflation data from April comes out early this week, and could cause mortgage rates to move in reaction.
- The Fed: Markets are starting to doubt that the Fed will need to cut rates this year more than previously expected to keep the economy and labor market from growing weaker, which is pressuring rates to start the week.