This week, markets balanced stronger economic reports with a slightly better inflation outlook.
Rates started the day slightly better as investors reacted to lower oil prices and inflation data that came in close to expectations.
Oil prices moved lower again after some midweek volatility tied to global headlines. That helped ease some concern about inflation because energy prices can affect many areas of the economy.
The latest inflation reading was still above the Fed’s comfort level, but it came in close to expectations. Other reports showed the economy is still holding up, which kept markets focused on what the Fed may do next.
What This Means
Mortgage rates may continue to adjust as markets respond to inflation, Fed comments, oil prices, and global headlines.
For now, the Fed is expected to stay put and wait for more data before making any major decisions.
Looking Ahead
Next week, the main focus will be on jobs and housing.
Markets will watch home price reports early in the week to see how housing is holding up. They will also pay close attention to labor market reports, especially Thursday’s BLS Jobs Report.
A steady labor market could keep the Fed patient, while signs of cooling could help ease rate pressure.
Miguel Terrazas
Mortgage Planner/Planificador Hipotecario // NMLS #227518
