Mortgage rates are facing upward pressure as the bond market reacts to a resilient U.S. economy. Last week’s employment report showed better-than-expected job gains, pushing the 10-year Treasury yield near 5%.

Rising energy prices are also adding to inflationary pressures, making it less likely for the Federal Reserve to ease interest rates soon.

This week, key data releases like the Existing Home Sales and PCE Inflation Report will provide further insights into economic conditions, with mortgage rates expected to remain elevated, impacting affordability for homebuyers.

Key events to watch:

• October 23: Existing Home Sales – Housing market demand insights.
• October 24: Jobless Claims – Labor market health.
• October 26: GDP Report – Strong growth could heighten inflation concerns.
• October 27: PCE Inflation – Fed’s preferred inflation gauge for future rate directions.

Have questions on the market or when to lock in your rate? Contact the Emma Butler Group @butlergroup@neighborhoodloans.com