Last Week's Mortgage Rate Recap: Rates moved lower 👍
Mortgage rates improved slightly last week when April's consumer price index report showed inflation easing for the first time in months. Rates were further helped when other data showed retail sales were unexpectedly flat last month.
This Week's Mortgage Rate Forecast: Rates likely to hold steady 👍
This week it is likely that mortgage rates will move slightly day-to-day, but will be basically unchanged for the week. Mortgage rates have settled in to a range anticipating that the Fed will cut rates two times this year, with the first cut likely to come at the September Fed meeting. Rates are not likely to move much lower unless we see more data showing the economy and labor market are slowing down while inflation is easing.
What's affecting rates this week:
- Fed speakers: Many of the Fed officials will be speaking this week, likely spreading the message that the Fed will keep its policy rate steady until later this year.
- Early close Friday: Markets will close early on Friday and be closed on Monday for Memorial Day. Lenders will also be closed on Monday.
- Economic data: There is little in the way of data this week to influence mortgage rates.