Mortgage rates are showing a little improvement today after moving higher this week as financial markets adjusted to stronger economic data and changing expectations for the Fed.
This week, mortgage rates moved higher as investors reacted to a solid labor market, continued inflation pressure, and expectations that the Fed may keep rates higher for longer. Today, oil prices are a little lower, and mortgage markets have regained some ground.
Companies placed more orders than expected for equipment, machinery, computers, and other major purchases.
What This Means
Mortgage rates continue to respond to economic data and expectations for the Fed. Today’s improvement is encouraging, but rates can still move as new information comes in.
Looking Ahead
Next week will be an important one for mortgage rates, with both employment and inflation reports on the calendar. The BLS Jobs Report and Personal Consumption Expenditures inflation report are likely to receive the most attention because they may influence expectations for future Fed decisions.
Miguel Terrazas
Mortgage Planner/Planificador Hipotecario // NMLS #227518
