Mortgage Rate Update: Economic Data Keeps Rates Mixed

What Did Rates Do This Week?

Mortgage rates were mixed this week. Most fixed-rate loan programs increased slightly, while adjustable-rate mortgages (ARMs) improved modestly. Jumbo loan pricing remained steady.

Markets reacted to Wednesday’s Federal Reserve meeting, Thursday’s stronger-than-expected GDP report, and the latest Core PCE inflation report. While the Fed left interest rates unchanged, inflation remains above its target, keeping pressure on mortgage rates. Meanwhile, easing tensions in the Middle East helped stabilize oil prices, reducing some inflation concerns.

What to Look Forward to Next Week

Next week, investors will focus on the monthly jobs report and unemployment data. Strong labor market numbers could keep mortgage rates elevated, while signs of a slowing economy may help rates improve.

Lock or Float Bias

Current Lock/Float Bias: Neutral to Slight Lock

Mortgage rates are likely to remain volatile as markets react to new economic data. Borrowers closing soon may want to consider locking their rate, while those with more time may choose to float but should expect continued market swings.