Better than expected, consumer and wholesale inflation data as well as a drop in retail sales for the first time in seven months helped mortgage rates improve for the week. Rates now reflecting a belief that the Fed is done hiking rates, and will begin cuts sometime in early 2024 as the economy slows down and the labor market softens.

This holiday shortened week is likely to see mortgage rates remain relatively unchanged, although we may see some movement from day-to-day. Markets and lenders will be closed on Thursday for Thanksgiving, and markets will close early on Friday. If we do see rates move this week, it will be more due to the holiday and low trading volume in markets than a shift in the outlook, and we should see a return to normal next week.

- Economic data: There are only a couple of small reports this week that are unlikely to cause too much of a stir for mortgage rates.

- Thanksgiving: This is usually a quiet week around the holiday, as most traders take off after Wednesday morning's data for a long weekend.