Last Week's Mortgage Rate Recap: Rates improved 👍
Rates improved last week when data showed both wholesale and consumer inflation is once again moving lower. The Fed left its policy rate unchanged last week and Fed Chair Powell signaled the Fed isn't likely to make any moves at the next meeting in July, with Fed officials projecting between 1-2 cuts this year.
This Week's Mortgage Rate Forecast: Rates may move higher 👎
While it was great to see rates move lower last week, we could be seeing rates capped out for the near term, meaning we aren't likely to see them move lower this week and instead are likely to see them get slightly worse. For those in process and closing soon, consider discussing locking with your mortgage pro. Those not yet under contract or in process though shouldn't worry much, rates are not likely to move that much higher.
What's affecting rates this week:
- Juneteenth holiday: Markets will be closed in observance of Juneteenth on Wednesday, and mortgage rates won't move that day.
- Economic data: Only a couple reports this week to watch, retail sales on Tuesday and PMI data on Friday. If the data reflects economic weakness we could see rates improve just slightly, but stronger data would pressure rates higher on the week.