Last Week's Mortgage Rate Recap: Rates were basically unchanged 👍
After moving higher over the last few weeks, mortgage rates held steady last week. Rates began the week slightly higher but ended virtually unchanged as markets adjusted to a new economic outlook.
This Week's Mortgage Rate Forecast: Rates should improve, but only slightly 👍
Rates showed signs of stabilizing last week and may see a modest improvement this week, especially with the Thanksgiving holiday approaching. However, significant declines are unlikely, and volatility could return next week with the release of labor market reports.
What's affecting rates this week:
- Politics: President-elect Trump picked hedge fund manager Scott Bessent as his Treasury secretary late on Friday. Bond markets reacted positively to the news, viewing Bessent as a moderating influence likely to bring a Wall Street perspective to policies like tax cuts and tariff changes. This optimism has supported a slight improvement in mortgage rates.
- Inflation: The Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report, is due on Wednesday. This is likely the last key economic data traders will act on before the Thanksgiving holiday and could help mortgage rates improve.