Blog posted On May 01, 2023
Last week, mortgage rates fluctuated slightly but failed to find any true momentum one way or another. They started the week trending slightly lower thanks to bond market improvement, only to climb higher mid-week and then trend lower once again. “That said, short term ups and downs are just a sideshow in the bigger picture where rates have been locked in a pattern of indecision that will ultimately give way to the next big move,” writes Matthew Graham of Mortgage News Daily. This week could give more insight into the market’s direction with the Federal Open Market Committee (FOMC) meeting and subsequent press conference from Federal Reserve Chairman Jerome Powell.
The market is braced for another 0.25% increase from the Fed. The more important factor that could impact rate movement is the rate ceiling and Fed rate expectations going forward. Some of this information and some of these hints will be found in the Fed’s statement on Wednesday. But the main focus has recently been on Fed Chair Powell’s press conferences that follow. The market keys into these press conferences to try and gauge where the Fed is headed next.
Other important market-moving reports scheduled for release this week include the Job Openings and Labor Turnover Survey (JOLTS), ADP nonfarm employment change, and the employment situation on Friday. Labor reports have also been closely watched by the markets and the Fed. The Fed has been hoping these numbers start falling, in which case, interest rates could trend lower as well.
Interested in learning more about the market movement and mortgage rates? Let us know and we’d be happy to help!
Sources: Bloomberg, Mortgage News Daily