Last Week's Mortgage Rate Recap: Rates Climbed 👎
Despite slowing inflation nearing the Fed's 2% target and a drop in October's job creation to pandemic lows, mortgage rates rose last week.
This Week's Mortgage Rate Forecast: Expect Volatility ⚠️
This week, mortgage rates may fluctuate due to the elections and the Fed's meeting. Although the Fed is expected to cut its policy rate again, this won’t directly lower mortgage rates. Markets will likely be volatile, which could cause volatility in mortgage rates.
What's affecting rates this week:
- Elections: While the presidential race draws the most attention, 469 congressional seats are also up for grabs, and traders will be working overtime speculating how results will affect the economy. Stocks may see more movement than bonds, but mortgage rates could be impacted as well.
- Fed Meeting: The Fed is anticipated to cut its policy rate by 0.25%, though this won’t directly lower mortgage rates. Instead, rates may respond to the Fed's policy statement and Chair Powell's press conference that comes after. We could see mortgage rates react to expectations of future Fed rate cuts based on what is said in the policy statement and at Powell's press conference.