Last Week's Mortgage Rate Recap: Rates improved 👍
Mortgage rates continued to move lower last week as markets reacted to comments from Fed members suggesting policy rate cuts could be on the table this year, depending on labor market and inflation trends. Inflation data came in mostly as expected, but most of the rate gains happened earlier in the week before that data dropped.
This Week's Mortgage Rate Forecast: Rates could continue to improve 👍
We’ve got a holiday shortened trading week packed with important data. If labor reports show signs of a weakening job market, that could fuel speculation the Fed might cut its policy rate as early as July, and that could help push mortgage rates even lower. That said, if the data comes in stronger than expected, that could instead push rates slightly higher.
What's affecting rates this week:
- Jobs data: Markets will be watching for signs of labor market weakness, and Thursday's BLS jobs data will have the biggest effect on rates for the week.
- Independence Day: Markets will close early on Thursday at 2pm ET and will be closed Friday.
- The Fed: Markets will continue to look for signs from Fed members that policy rate cuts are coming, and if a July cut becomes more likely it will help mortgage rates improve.