Weekly Economic Update: What’s Ahead for Mortgage Rates?

This week’s economic calendar holds a few key reports that could further impact mortgage rates, which are currently hovering near their highest point since mid-summer.Here’s what to watch this week:

Key Economic Reports

1. Existing Home Sales (October 23) – This will give insights into housing demand. Lower sales could indicate the high rates’ effect on affordability, potentially influencing Fed decisions in the coming months.
2. Initial Jobless Claims (October 24) – Strong employment numbers support economic growth, but they also keep inflation concerns alive, potentially sustaining pressure on rates.
3. GDP Report (October 26) – Expected growth in GDP might signal ongoing economic strength. However, if the report shows faster-than-expected growth, it could drive inflation worries, impacting mortgage rates further.
4. PCE Inflation Report (October 27) – As the Fed’s preferred measure of inflation, the PCE report will be critical. Persistent inflation in this report could mean the Fed keeps rates higher for longer to curb spending pressures.

What Does This Mean for Mortgage Rates?

Rates on 30-year mortgages are currently holding around 7%, up from the year’s lows, and likely to remain in this elevated range if inflation stays sticky. Any stronger economic reports could push rates even higher in the short term, so buyers might consider locking rates early in the week.

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