Alright, let’s break down those economic reports and how they’re shaking up mortgage rates.
What happened last week (August 5th to 9th)?
So, last week was kind of a mixed bag for mortgage rates. We got a few key reports:
- The Job Report: This one was a biggie. More jobs were added than expected, which is usually good news for the economy. But, when the job market’s too hot, it can push inflation up. And guess what? Higher inflation often means higher mortgage rates. So, this report might have put a little upward pressure on rates.
- Inflation Reports: These reports give us a sense of how much prices are rising. We got a few different ones last week, and while they showed some cooling in inflation, it wasn’t as much as everyone hoped. This means the Federal Reserve might still need to raise interest rates to get inflation under control, which again, isn’t great news for mortgage rates.
Fun fact: Did you know that inflation is kind of like a sneaky thief? It quietly steals the value of your money over time. That’s why keeping an eye on it is so important!
What’s coming up this week (August 12th to 16th)?
This week, we’re looking at a few more economic reports that could impact mortgage rates:
- Retail Sales: This tells us how much people are spending. If people are spending like crazy, it could fuel inflation, which could push mortgage rates up.
- Industrial Production: This gives us a sense of how factories are doing. If they’re humming along, it’s generally good for the economy, but it can also contribute to inflation.
So, basically, we’re playing a waiting game. If we see more signs of inflation cooling down, mortgage rates might take a breather. But if inflation keeps hanging around, we could see those rates creep up again.
Stay tuned! We’ll have to wait and see what the numbers say.
Would you like to know more about how mortgage rates affect homebuyers?
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