We are heading into a busy week for the market. Before we look ahead, here is a quick recap of how last week ended.
Markets reacted to a stronger-than-expected jobs report, with the economy adding 172,000 jobs and unemployment staying at 4.3%.
A strong job market is good for the economy, but it can also keep pressure on mortgage rates. When the economy stays strong, the Fed has less urgency to make changes.
This week, the focus shifts from jobs to inflation.
Markets will be watching oil prices, global headlines, and new inflation reports to see whether prices are improving or staying sticky.
On the housing side, home values are still holding up. The ICE Home Price Index showed home values rose in May, with increases in most markets.
What This Means
This week may bring more rate movement as markets wait for fresh inflation numbers.
If inflation comes in higher than expected, mortgage rates could feel more pressure. If inflation shows signs of cooling, that could give the market some relief.
Looking Ahead
Markets will be watching the Consumer Price Index and Producer Price Index to see if inflation is improving or staying sticky.
Mortgage rates fluctuate daily—sometimes even within the same day—based on economic conditions.
Miguel Terrazas
Mortgage Planner/Planificador Hipotecario // NMLS #227518
