Hope you've had a great week! As we wrap up another week, here's a quick look at the biggest economic news and market trends that helped shape mortgage rates.
Mortgage rates ended the week a little lower as oil prices dropped after signs of easing tensions in the Middle East helped calm inflation concerns. Most economic reports came in as expected and didn't have much impact on the markets. The Fed's preferred inflation measure, Core PCE, showed inflation is still running above its 2% goal, reminding investors that inflation remains stubborn and the Fed is likely to stay cautious.
Looking ahead, investors will be watching developments in the Middle East and any progress toward easing tensions, along with comments from Federal Reserve officials about future interest rate decisions. On the economic front, reports on job openings and consumer confidence arrive Tuesday, followed by manufacturing data Wednesday. The biggest report of the week comes Thursday with the latest jobs numbers, unemployment rate, and wage growth data, all of which can influence mortgage rates. Mortgage markets will be closed Friday in observance of the Fourth of July holiday.
Please feel free to contact me if I can provide guidance or assistance to you or someone you know!
For a detailed list of programs we offer, please visit: www.homeloanmortgageco.com/mortgageprograms
Regulated by the Colorado Division of Real Estate
Happy Friday! As we close out the week following the Juneteenth holiday, here’s a quick look at the key economic updates and market trends shaping mortgage rates right now.
Mortgage rates moved a little higher this week as investors reacted to the Federal Reserve's latest meeting. In his first meeting as Fed Chair, Kevin Warsh and the Fed decided to leave rates unchanged, but their comments signaled they may keep borrowing costs higher for longer if inflation stays stubborn. That more hawkish message put some upward pressure on mortgage rates, even as economic data showed the economy continues to grow at a steady pace.
The markets are closed today for the Juneteenth holiday and will reopen Monday. Next week starts off quietly, with no major reports on Monday, but things pick up later in the week. The biggest report to watch is Personal Income and Outlays, which includes the PCE inflation data that the Fed follows closely. We'll also see a few Treasury auctions, and with the Fed meeting now behind us, Fed officials will be back in the spotlight as they share their thoughts on the economy and future rate decisions.
Hope everyone had a good week—here’s a quick look at what moved the markets and what to keep an eye on heading into next week.
Inflation was the big story this week, with the Consumer Price Index showing prices rose 4.2% from a year ago in May, while core inflation came in at 2.9%. Investors also kept a close eye on the conflict with Iran, which added uncertainty to the markets and pushed energy prices higher. Mortgage rates saw plenty of volatility as investors reacted to both the inflation data and geopolitical headlines. The 10-year Treasury yield jumped after President Trump threatened additional military action against Iran, then moved back lower after those planned strikes were called off and tensions appeared to ease. When the dust settled, mortgage rates ended the week slightly lower than where they ended last week.
For the markets, attention will likely stay focused on developments in the Middle East early in the week, as Monday and Tuesday’s economic reports are not expected to have much impact. The biggest day will be Wednesday, when a key consumer spending report is released and the Federal Reserve wraps up its meeting, including updated economic forecasts and clues about future rate policy. After that, the economic calendar is fairly quiet for the rest of the week.
Happy June and welcome to this week's market update!
Mortgage rates moved a tad higher this week as oil prices increased and economic reports showed the labor market remains stronger than expected. Employers added more jobs than forecast, job openings rose, and both the manufacturing and services sectors continued to grow. While wage growth cooled, the overall strength of the economy could make the Federal Reserve less likely to cut interest rates anytime soon, putting upward pressure on mortgage rates.
Looking ahead, investors will continue to watch developments in the Middle East and listen for clues from Federal Reserve officials about future interest rate decisions. Key reports this week include Existing Home Sales on Tuesday and two important inflation reports—CPI on Wednesday and PPI on Thursday—which could influence the direction of mortgage rates.
Hello, I hope you’re having a great Friday!
News about possible progress in ending the conflict in the Middle East was the biggest factor affecting mortgage markets this week, helping mortgage rates move a little lower. Inflation is still staying higher than the Fed would like, which continues to put pressure on rates. At the same time, many Americans are saving less as everyday costs stay high, and consumer confidence dipped again as people remain worried about prices, jobs, and the economy.
Next week brings several important economic reports, including the closely watched ISM manufacturing report on Monday and the jobs report on Friday, both of which could impact mortgage rates. A few other economic updates will come out during the week as well. News from the Middle East could also affect markets, especially with President Trump expected to make a decision on the Iran peace plan.
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.