For the week of December 18, 2023

Last Week's Mortgage Rate Recap: Rates improved 👍
Mortgage rates fell to the lowest levels in months last week, because the Fed signaled it is likely done raising rates and will probably cut rates in 2024. Although the Fed doesn't set mortgage rates, Fed rate cuts will contribute to lower rates across the board, including mortgage rates.

This Week's Mortgage Rate Forecast: Rates may creep higher 👎
When rates move significantly lower like we saw last week, we often see some give back in the following days. Also, the current lower mortgage rates reflect a belief that the Fed will cut rates six times next year, starting as soon as March. Fed officials are trying to convince markets that cuts are not likely to begin that soon and that the Fed is forecasting it will only cut rates three times next year.

What's affecting rates this week:
- Economic data: Mortgage rates may be influenced this week by the final 3rd qtr GDP reading on Thursday, as well as the PCE inflation data on Friday. Stronger economic data may pressure rates slightly higher.
- Holidays: Traders tend to take the end of year off, resulting in less trading volume that contributes to market volatility that can cause day-to-day and intraday swings in mortgage rates. Markets will be closed for Christmas.