Mortgage Interest rates had a great run last week. Friday was not great, but before Friday, we had reason to cheer and have hope for a great run downward. At the end of day Thursday, the rate drop was the best weekly drop in rates since back in November, 2022.
Things began to change on Friday last week. The jobs report was too good – showing the labor force was strong and growing, which is not good keeping inflation in check, and mortgage rates hate anything that causes inflation to rise. After all, that is what has caused the Fed to raise rates the crazy way they have been doing so since last year. By yesterday afternoon and this morning, rates are back up and erased those solid gains of last week.
Buckle up for tomorrow. It is the morning we see the Consumer Price Index (CPI) report. This is the most important monthly inflation report and can cause mortgage rates to react even more than the jobs report can.