Last Week's Mortgage Rate Recap: Rates moved higher 👎
Data last week showed the labor market was much stronger than forecast, with more new jobs created and more job openings than was expected. Along with data that shows the economy remains resilient, this data makes it more likely the Fed will need to continue to raise its rate and hold it higher for a longer period of time to fight inflation. Mortgage rates moved higher on the week due to the news.
This Week's Mortgage Rate Forecast: Rates could improve 👍
Although it is unlikely mortgage rates will make any big moves lower, this week brings the best chance of seeing improvement or at least a stop to the recent jump in mortgage rates if data shows signs of cooling inflation.
What's affecting rates this week:
- Markets closed: Markets are closed on Monday, so Tuesday could see mortgage rates make bigger moves than normal.
- Economic data: Wholesale inflation data comes out on Wednesday followed by consumer inflation data on Thursday. Signs of cooling inflation will help stabilize mortgage rates, however if the data shows inflation is starting to increase again, we could see mortgage rates move higher on the news.
- The Fed: Minutes will be released on Wednesday from last month's Fed meeting.