Housing Market Update | Week of July 15
Published: July 15, 2024
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Housing Market Update | Week of July 15
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A big domino fell last week that could be a catalyst for lower mortgage rates long-term. Last Thursday’s Consumer Price Index (CPI) showed that overall inflation had dropped by 0.1%. This is the kind of data that the markets have been waiting for as lowering inflation will only increase the Federal Reserve’s confidence to cut rates this year. This week, we could see rates continue to drop if spreads continue to improve for 10-year treasury yields.
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Last Week's Mortgage Rate Recap
Rates Dropped Slightly
Last week, rates dropped slightly as the CPI dropped 0.1% in the July report—a sign that inflation is declining. With signs also showing a slowdown in economic growth, many investors sought safer assets such as government bonds, driving the 10-year yield lower and, in turn, mortgage rates.
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This Week's Mortgage Rate Forecast
Rates Could Be Volatile
Coming on the heels of a pivotal CPI report, rates could be volatile this week with the potential to drop lower at the end of the week. On Thursday, we will get the latest initial jobless claims report; if we see continued softening within the labor market, the likelihood of the Federal Reserve cutting rates in September will continue to increase, driving rates lower.