What Did Rates Do This Week?
Mortgage rates moved slightly higher this week as markets reacted to several key economic reports, including Tuesday’s CPI report and Thursday’s PPI and Retail Sales data.
The CPI report showed that inflation accelerated more than expected, which caused investors to become more cautious about future Federal Reserve rate cuts. Thursday’s reports reinforced that concern, as consumer spending remained strong and wholesale inflation pressures continued to linger.
As a result, mortgage rates edged modestly higher throughout the week.
What to Look Forward to Next Week
Next week, markets will continue watching inflation trends, Federal Reserve commentary, jobless claims, and housing data for clues about the direction of interest rates.
If inflation remains elevated and economic data stays strong, mortgage rates could remain under pressure. However, weaker economic reports could help improve market sentiment and stabilize rates.
Lock or Float Bias
Current Lock/Float Bias: Lock
With inflation showing signs of reaccelerating and markets remaining volatile, borrowers closing soon should strongly consider locking their rate. Longer-term borrowers may still have opportunities if inflation data improves in the coming weeks.
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