Last Week's Mortgage Rate Recap: Rates improved 👍
Mortgage rates improved slightly last week, helped by signs that despite headline numbers showing strength the labor market has cooled off from earlier in the year. Increasing unemployment makes it more likely the Fed will cut its policy rate at the December meeting.
This Week's Mortgage Rate Forecast: Rates should remain near these levels 👍
While mortgage rates haven’t returned to the lows seen in September, they have eased from the highs of October and early November. This week's inflation data and next week's Fed meeting could cause rates to fluctuate day-to-day, but significant rate increases seem unlikely this week. However, it's not likely we see rates move much lower from here either.
What's affecting rates this week:
- Inflation data: Consumer inflation data comes out Wednesday and is most likely to have an affect on mortgage rates, with wholesale inflation data coming out on Thursday. Declining inflation numbers would help mortgage rates improve, while signs of increasing inflation could pressure rates higher.
- Treasury auctions: There are a few auctions this week, and strong demand from investors would help keep Treasury yields lower, which typically benefits mortgage rates.