Mortgage Rate Update: Falling Oil Prices Help Mortgage Rates Move Lower
What Did Rates Do This Week?
Mortgage rates decreased slightly this week as falling oil prices helped ease inflation concerns and improve bond markets. Lower energy costs can reduce future inflation pressures, which is good news for the bond market and often leads to lower mortgage rates.
As a result, mortgage rates edged lower, offering a small improvement for homebuyers and homeowners.
What to Look Forward to Next Week
Next week, markets will focus on employment data and other economic reports for clues about the strength of the economy and the direction of inflation.
If inflation continues to cool and economic data softens, mortgage rates could remain favorable. However, stronger-than-expected reports could create renewed volatility.
Lock or Float Bias
Current Lock/Float Bias: Neutral to Slight Float
With mortgage rates trending modestly lower, borrowers with longer closing timelines may consider floating for potential additional improvement. Those closing soon may still prefer the certainty of locking in today’s rates.
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