Last Week's Mortgage Rate Recap: Rates were basically unchanged 👍
Although many consumers mistakenly thought that a half-point rate cut by the Fed to its policy rate meant that mortgage rates would fall, they didn't. In fact we saw some volatility through the week as rates got slightly worse before improving to end the week basically unchanged.
This Week's Mortgage Rate Forecast: Rates likely to hold 👍
Mortgage rates are not likely to make any big moves higher or lower this week. Markets continue to digest Fed comments about pending policy rate cuts, but there is little economic data to influence rates this week. The overall outlook is that rates will improve slowly over time, and that we shouldn't expect rates to make any big moves significantly lower anytime soon.
What's affecting rates this week:
- Inflation data: The Fed's favored gauge of inflation, the Personal Consumption Expenditures (PCE) index, will come out on Friday. It is not likely that inflation falls enough to push mortgage rates much lower, but we could see at least a little bit of improvement if the report shows inflation continues to fall.
- Fed speakers: Fed members are out this week sharing their insight into the economy, labor market, and future Fed policy rate cuts.