Mortgage rates were slightly higher this morning as oil prices moved up because of continued tensions in the Middle East.
Markets are watching inflation, oil prices, and the Fed for clues about where mortgage rates may go next.
This week’s economic reports were mixed. Durable goods orders were weaker overall, although business investment remained steady. Home prices continued to rise, but at a slower pace. The Fed left its key interest rate unchanged, while second-quarter economic growth came in softer than expected.
Inflation showed some improvement. Today’s Employment Cost Index showed wages and employee benefits rising slightly more than expected.
What This Means
Mortgage rates may continue to adjust as markets respond to oil prices, inflation, and new economic data. The improvement in inflation is encouraging, but markets will want to see continued progress.
Looking Ahead
Next week’s focus will be on employment. Several reports will provide clues about hiring, but the most important will be Friday’s BLS Jobs Report. It will show job growth, unemployment, and wage growth, and could have the biggest impact on mortgage rates.
Next Week’s Reports to Watch:
• Tuesday: JOLTS Job Openings
• Wednesday: ADP Employment Report
• Thursday: Job Cuts and Jobless Claims
• Friday: BLS Jobs Report
Mortgage rates fluctuate daily—sometimes even within the same day—based on economic conditions.
