Weekly Mortgage & Housing Market Recap

How It Started

Mortgage rates and bonds started the week relatively stable as investors watched the economy and upcoming inflation data. The big question was whether inflation was cooling enough to give the Fed room to avoid raising rates. At the same time, softer job market data continued to raise questions about how strong the economy really is.

Where We Are Now

The latest inflation numbers were mostly in line with expectations, but the details were encouraging. Much of the inflation came from a handful of categories rather than broad price increases across the economy.

Home prices are still rising, with national appreciation remaining positive. However, higher mortgage rates continue to put pressure on buyers, and new home sales have slowed.

Where We're Headed

The biggest story heading forward is the Federal Reserve.

Fed Chair Kevin Warsh has been clear in that rate hikes remain possible if inflation doesn't improve. Markets are now watching closely for signs of whether the Fed will raise rates or hold steady.

For homebuyers, this means mortgage rates could remain volatile in the near term. But the housing market isn't standing still. Prices are still rising, and buyers are adjusting to higher rates. If you're thinking about buying, the best strategy is to focus on what works for your budget today rather than trying to perfectly predict where rates will go next.

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