Forecast for the week of May 8, 2023
Please enjoy this complimentary mortgage rate forecast provided to keep you informed of where interest rates may be headed, and to help you gain the advantage in securing low rates and payments.
Last Week’s Mortgage Rate Recap:
Rates slightly improved
Mortgage rates improved slightly last week, with the best rates on Thursday after the Fed meeting before losing a little bit of ground Friday with strong jobs data. All movements were small though, with surprisingly little reaction to the Fed meeting.
This Week’s Mortgage Rate Forecast:
Rates could improve
This week mortgage rates will react to inflation data, which is currently expected to show inflation continuing to cool, which would then support a Fed rate hike pause in June. Although rates are not likely to come down significantly, we could see at least slightly better rates to end the week if the data goes our way.
What’s affecting rates this week:
- Inflation data: Wednesday brings the CPI consumer inflation report, a key report that could help rates improve if it shows a significant drop in inflation. Thursday brings wholesale inflation, not as important to mortgage rates but still having some effect.
- The Fed: Speculation of future Fed policy rate actions will continue to impact mortgage rates over the next few months. Rates will improve on any news that shows disinflation or a slowing economy, because the Fed will have to start cutting rates later this year or early 2024 if we find ourselves in a recession.
If you have questions, would like to discuss interest rates further, or find out the benefits of locking your rate today, we’d love to help! Please contact us HERE.