Last Week's Mortgage Rate Recap: Rates improved
After holding steady for the past couple of weeks, mortgage rates finally dropped last week as reports showed the job market is slowing. The weaker data not only helped bring mortgage rates down, it added to expectations that the Fed may need to make more rate cuts in the months ahead.
This Week's Mortgage Rate Forecast: Rates could move lower
Last week’s momentum could help mortgage rates keep moving lower this week. The big wildcard will be wholesale and consumer inflation reports. If they show prices heating up, rates could stall. Still, rates don’t appear to be at risk of moving much higher right now, and there’s a good chance they’ll continue to trend down.
What’s affecting rates this week:
- Inflation reports: Key data on wholesale and consumer inflation will come out this week. If inflation comes in hotter than expected, it could slow or stop rates from falling.
- The Fed: Weaker job market data has markets expecting the Fed to cut rates three times this year. Any shift in that outlook could affect mortgage rates.
- Market sentiment: Investors are watching closely to see if last week’s drop in rates has staying power. If confidence builds, rates may continue to drift lower.