Last Week's Mortgage Rate Recap: Rates moved higher 👎
Despite improving towards the end of the week, mortgage rates still ended the week higher as rates peaked on Wednesday before falling slightly. The last minute deal over the weekend to avoid a government shutdown may push rates higher this week.
This Week's Mortgage Rate Forecast: Rates could continue higher 👎
Mortgage rates continue to reach new highs, as do many consumer rates including car loan rates and credit card rates. It is unlikely we will see mortgage rates fall much from here in the near future, and are more likely to see rates creep higher until we see signs that the economy is slowing down and inflation continues to fall.
What's affecting rates this week:
- Labor Market: Tuesday brings data on job openings and turnovers, Wednesday brings private payroll data, Thursday brings unemployment claims, and Friday brings reports for new jobs created along with unemployment and wage growth numbers. Unless we see clear signs that the labor market is softening, it is unlikely the jobs data will help rates much.
- Fed speakers: Fed members continue to spread the message that the Fed will likely need to raise its rate at least one more time this year, pressuring mortgage rates higher.