Last Week's Mortgage Rate Recap: Rates improved
Mortgage rates ended the week just slightly lower after inflation data came in as expected. Last week didn't have much in the way of economic data to influence mortgage rates, but that changes this week.
This Week's Mortgage Rate Forecast: Rates could be volatile
Not only is this a holiday shortened trading week, it is also a week filled with labor market data that could affect mortgage rates. Depending on what the data shows and how markets react to it, we could see mortgage rates move either way. While the risks are high, the right mix of data could give rates room to improve, but stronger-than-expected numbers may push them higher.
What’s affecting rates this week:
- Jobs data: Multiple different reports on the state of the labor market, including job openings, unemployment claims, and Friday's numbers of new jobs created and unemployment could cause rates to shift beginning Wednesday.
- Fed rate cut speculation: Mortgage rates currently reflect an expected Fed rate cut in September, and two cuts by year's end. If labor data shows weakness, talk of even more cuts could push rates lower, while stronger data would likely push them higher.