Last Week's Mortgage Rate Recap: Rates slightly better 👍
Mortgage rates moved slightly lower for the week, although most media sources are still behind the curve and some of the headlines about how low rates are at have been overblown. Rates got a boost on Friday from Fed Chair Powell's comments that "the time has come for policy to adjust".
This Week's Mortgage Rate Forecast: Rates could creep a bit lower 👍
Rates are not likely to make any big moves this week, but could continue to creep lower, usually improving the lender rebate (credit you get towards closing costs or the cost to buy a rate down using points) rather than seeing actual rates move lower.
What's affecting rates this week:
- Economic data: Thursday brings the final 2nd quarter GDP data, and Friday brings the PCE inflation data, which is the Fed's favorite gauge of inflation. Markets didn't react much to the CPI inflation data earlier in the month, which could signal we won't see a big reaction to Friday's data.
- Labor Day: Markets are closed Monday September 2nd, so we could see some conservative rates on Friday this week ahead of the holiday weekend.
- Fed rate cuts: Mortgage rates could react favorably if markets speculate larger Fed rate cuts coming at the September meeting.