𝗥𝗲𝗰𝗮𝗽 𝗼𝗳 𝗹𝗮𝘀𝘁 𝘄𝗲𝗲𝗸: 𝗥𝗮𝘁𝗲𝘀 𝘀𝗹𝗶𝗴𝗵𝘁𝗹𝘆 𝘄𝗼𝗿𝘀𝗲
The outlook for mortgage rates unexpectedly shifted last week, as Fed members made it clear that they expected to pause rate hiking in June but were leaving the door open for more hikes in the future if needed. A couple of weeks ago markets had been pricing in Fed rate cuts to begin as early as July, but markets now expecting the Fed to hold rates longer. This shift in outlook has pressured mortgage rates to slowly move higher.
𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗥𝗮𝘁𝗲 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁: 𝗥𝗮𝘁𝗲𝘀 𝗰𝗼𝘂𝗹𝗱 𝗺𝗼𝘃𝗲 𝗵𝗶𝗴𝗵𝗲𝗿
With little in the way of economic data and a holiday weekend, it isn't likely we see a change in the current outlook and we could see rates creep slightly higher this week. Rates unlikely to move lower again until the Fed outlook changes.
𝗪𝗵𝗮𝘁'𝘀 𝗮𝗳𝗳𝗲𝗰𝘁𝗶𝗻𝗴 𝗿𝗮𝘁𝗲𝘀 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸:
- Economic data: Little data this week that is likely to affect rates, other than Friday's PCE inflation report.
- Debt ceiling talks: Although concerns of a U.S. default due to not raising the debt ceiling are having some effects on markets, there hasn't been a spillover into mortgage rates yet and likely wouldn't be unless we start to actually default on debt payments.
- Fed speakers: Fed members speaking throughout the week could continue to cause rates to creep higher.
Where are rates lately?
Conventional 30 year fixed ($ 726,200 loan amount or less)
5.875% to 6.5% with points
FHA 30 year fixed ($ 726,200 loan amount or less)
5.625% to 6.25% with points
VA 30 year fixed ($ 726,200 loan amount or less)
5.625% to 6.25% with points
Write a comment