For the week of November 28, 2022
Recap of last week: Rates were unchanged
With traders taking the second half of the week off, average mortgage rates ended last week's holiday shortened week at basically the same level as the previous week.
Mortgage Rate Forecast: Rates should remain low but could see volatility
There are two economic reports this week that could affect mortgage rates, the PCE inflation report and jobs data. It isn't too likely that we will get any surprises on the reports that could push rates significantly higher or lower, but we could see some smaller movement. The overall outlook though is still good for rates, and that rates should remain stable heading into next month's Fed meeting.
What's affecting rates this week:
- Economic data: On Thursday we will get the Fed's favorite gauge of inflation, the PCE inflation report. If it shows inflation is decreasing, like we saw with the CPI inflation report a couple of weeks ago, it could help mortgage rates remain at these levels or move slightly lower. On Friday we will get jobs data, and a strong report could pressure rates, while a weaker report could help mortgage rates.
- The Fed: Fed Chair Jerome Powell is speaking on Wednesday, and is expected to confirm a slower pace of future Fed rate hikes, which is good for rates.
