Mortgage rates moved higher again last week, with market 30 year fixed rates increasing another 0.125% week over week. Inflation data came in hotter than expected, which added more pressure to both bond markets and interest rates.<\/p>\n\n\n\n
Here\u2019s a look at what happened last week and what we\u2019ll be watching in the days ahead.<\/p>\n\n\n\n
One of the biggest stories last week was inflation.<\/p>\n\n\n\n
Consumer inflation, measured by the Consumer Price Index (CPI), rose 0.6% in April and 3.8% year over year. Higher gas, fuel, and food prices were some of the biggest contributors.<\/p>\n\n\n\n
Core inflation, which excludes food and energy, also came in above expectations:
\u2022 Up 0.4% for the month
\u2022 Up 2.8% year over year<\/p>\n\n\n\n
Wholesale inflation also showed continued pressure. Producer Price Index (PPI) data rose 1.4% monthly and 6% annually, reflecting ongoing increases in energy and production costs.<\/p>\n\n\n\n
Inflation remaining elevated continues to make the Federal Reserve\u2019s job more difficult as markets look for clues about future interest rate policy.<\/p>\n\n\n\n
The Federal Reserve is currently navigating competing concerns.<\/p>\n\n\n\n
On one side, inflation remains stubbornly high. On the other, there are signs the labor market may be gradually slowing down.<\/p>\n\n\n\n
Kevin Warsh was officially confirmed as the new Fed Chair, and markets are now closely watching the upcoming June Fed meeting for additional guidance. Warsh has historically taken a firm stance on inflation, which could influence future policy decisions moving forward.<\/p>\n\n\n\n
There was some encouraging news in housing last week.<\/p>\n\n\n\n
Existing home sales rose slightly by 0.2% in April, while housing inventory increased to 1.47 million homes nationwide.<\/p>\n\n\n\n
Although inventory remains below historical averages, more homes hitting the market is helping ease some of the intense competition buyers have experienced over the last few years.<\/p>\n\n\n\n
Bidding wars have cooled in many markets, and affordability has improved modestly compared to previous months.<\/p>\n\n\n\n
Retail sales increased 0.5% in April, showing consumers are continuing to spend despite higher fuel and living costs.<\/p>\n\n\n\n
At the same time, labor market data showed a mixed picture:
\u2022 Initial jobless claims remained relatively low
\u2022 Continuing unemployment claims stayed elevated<\/p>\n\n\n\n
This suggests employers are still holding onto workers overall, but people searching for jobs may be taking longer to find new employment opportunities.<\/p>\n\n\n\n
Mortgage bonds weakened last week, while the 10 year Treasury yield moved above key resistance levels.<\/p>\n\n\n\n
In general, higher Treasury yields tend to lead to higher mortgage rates, which is part of why rates moved upward again over the past week.<\/p>\n\n\n\n
Markets continue reacting to inflation data, Fed expectations, and broader economic uncertainty.<\/p>\n\n\n\n
Several reports this week could influence mortgage rates and market sentiment, including:
\u2022 Builder confidence
\u2022 Pending home sales
\u2022 New home construction data
\u2022 Federal Reserve meeting minutes
\u2022 Updated jobless claims<\/p>\n\n\n\n
As always, markets will continue watching inflation trends, labor market data, and signals from the Federal Reserve closely.<\/p>\n\n\n\n
If you have any questions about today\u2019s market or how rates may impact your plans, feel free to reach out anytime.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Mortgage rates moved higher again last week, with market 30 year fixed rates increasing another 0.125% week over week. Inflation data came in hotter than expected, which added more pressure to both bond markets and interest rates. Here\u2019s a look at what happened last week and what we\u2019ll be watching in the days ahead. Inflation […]<\/p>\n","protected":false},"author":26,"featured_media":595669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-595666","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter"],"yoast_head":"\n