For the week of May 13, 2024

Last Week's Mortgage Rate Recap: Rates slightly lower 👍
Mortgage rates improved a little bit last week as markets remained optimistic that the Fed will cut rates later this year and will not need to instead start hiking rates to fight inflation. Overall it was a quiet week for rates as traders held steady ahead of this week's inflation data.

This Week's Mortgage Rate Forecast: Rates will be volatile, could improve ⚠️
This week will be a big one for mortgage rates, which could either continue improving or will see a turnaround based on the reaction to the inflation data released this week. Be sure to stay in touch with your mortgage professional to assess the risks to locking or floating if you're currently in the mortgage process.

What's affecting rates this week:
- Inflation data: Wholesale inflation data comes out Tuesday, but will have a much smaller effect on mortgage rates than Wednesday's consumer CPI inflation data. The early projections are that we will see a slowing in inflation, which will help mortgage rates improve from here.
- Retail sales data: Because this report comes out on Wednesday at the same time as inflation, it will either help the market rally that improves rates or the sell off that pushes mortgage rates higher.