Housing Market Update | Week of June 3rd
Published: June 3, 2024
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Housing Market Update | Week of June 3rd
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Last week, mortgage rates continued to slide closer to 7% after the Federal Reserve’s favorite yardstick for inflation, the PCE report, showed cooler monthly core inflation. This week is a big one for mortgage rates; with the labor market appearing to soften, this week’s flurry of labor data—which includes job openings, ADP jobs reports, jobless claims, and more—could cause rates to continue to drop if the data falls in line with recent trends.
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Last Week's Mortgage Rate Recap
Mortgage Rates Dropped
Despite a shortened week last week, mortgage rates dropped because the monthly core inflation seen in the PCE report came in slightly cooler than expected. The lower consumer spending figures seen in Friday’s report also align with the notion that the labor market is beginning to soften.
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This Week's Mortgage Rate Forecast
Rates Could Drop Further
This week is a big one for mortgage rates: it’s jobs week! As we’ve said throughout the year, the likelihood of the Federal Reserve cutting rates this year hinges on weakness in the labor market. Throughout the week, we have a flurry of labor data set to be released, including jobless claims, the ADP jobs report, and the big U.S. employment report. If the data shows prolonged unemployment and increased jobless claims, expect rates to dip further.
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