Last Week's Mortgage Rate Recap: Rates were a bit crazy 👎
Rates improved early in the week as markets grew optimistic that the Fed was likely to cut its policy rate at least a couple of times by the end of the year. However, rates jumped higher on Friday when the BLS jobs data showed a lot more jobs were created than what had been forecast, ending the week just slightly better than the previous week.
This Week's Mortgage Rate Forecast: Rates will be volatile ⚠️
Rates this week will definitely move higher or lower, we just don't know which way they will go. Rates should start the week off calm, but Wednesday brings inflation data and the Fed meeting. Depending on how the data comes out and what the Fed says, we could see rates start to improve again or they could move quite a bit higher. There is a lot of risk this week.
What's affecting rates this week:
- Inflation data: The CPI inflation report comes out Wednesday morning before mortgage rates are released and will affect rates that day.
- Fed meeting and press conference: The Fed is unlikely to cut or hike rates at this month's meeting, however will release its quarterly forecast for rates. Fed Chair Powell's press conference is also likely to cause rates to move Wednesday afternoon.