Last Week's Mortgage Rate Recap: Rates moved higher 👎
Mortgage rates made a significant move higher last week after jobs data came in much stronger than expected, showing a resilient labor market with lots of new jobs created and a drop in unemployment. The strong labor data makes Fed rate cuts less necessary, and the reaction in markets pushed mortgage rates higher.
This Week's Mortgage Rate Forecast: Rates could continue to worsen 👎
Mortgage rates may continue higher this week because momentum has shifted after last week's jobs data. Although eventually rates will move lower again, we could see some more worsening this week before that happens.
What's affecting rates this week:
- Market momentum: Markets now pricing in the chance that the Fed may not even cut rates at all at the November meeting, which is pressuring mortgage rates higher this week. Traders still believe a quarter point cut is the most likely result, but if concerns about cuts grow from here it will pressure mortgage rates higher in the near term before seeing them move lower again.
- Inflation data: Although not as important as a few months ago, inflation data could help stop rates from rising higher from here. However, the data doesn't come out until late in the week.