Last Week's Mortgage Rate Recap: Rates moved higher 👎
Mortgage rates edged slightly higher last week as inflation remained above the Fed's 2% target, signaling that progress toward lowering inflation may have stalled.
This Week's Mortgage Rate Forecast: Rates could move higher ⚠️
Mortgage rates are likely to hold steady to begin the week, but could turn volatile when the Fed meeting concludes on Wednesday. Without clear data showing inflation is improving or that the economy and labor market are weakening, mortgage rates are not likely to move lower.
What's affecting rates this week:
- Fed meeting: The Fed is expected to cut rates for a third consecutive meeting in December, but is likely to signal a pause - or even an end - to further cuts as we head into 2025. A quarter point Fed rate cut will not help mortgage rates, because markets have already accounted for the coming rate cut and priced it in. Markets will be looking for signs of what the Fed will do moving forward, and any indication the Fed is done cutting rates will likely pressure mortgage rates higher.
- Fed press conference: Fed Chair Jerome Powell will hold his press conference after the Fed meeting, which is likely to cause more volatility in mortgage rates. as markets react to his remarks.