Last Week's Mortgage Rate Recap: Rates moved lower 👍
Mortgage rates continued to move lower last week, but once again it was in small steps rather than seeing big rate drops. Rates were helped last week as reports came out showing inflation rose at the slowest pace since early 2021, as well as markets pricing in the chance of a larger rate cut at the September Fed meeting.
This Week's Mortgage Rate Forecast: Rates could improve but will be volatile ⚠️
Mortgage rates are likely to start the week relatively unchanged but have the potential to move lower after the Fed meeting and Fed Chair Powell's press conference on Wednesday. Expect volatility after the meeting and into Thursday.
What's affecting rates this week:
- The Fed: The Fed will be cutting rates at this week's meeting, with markets now anticipating that cut to be a half point rather than the previously expected quarter point, after an article last week in the Wall St. Journal. While mortgage rates are not set by the Fed, they will react to the Fed rate cut as well as the quarterly projections of Fed members on where the policy rate will be in the future.
- Fed press conference: Expect more market reaction to Fed Powell's press conference, which will affect mortgage rates this week.