Mortgage rates made a positive move downward last week as market concerns about economic growth began to rise. While Consumer Confidence dipped more than expected, this provided a clearer picture of how consumers are taking a more cautious approach to the future, especially when it comes to inflation. The future outlook component of the index indicates a desire for more stability, which could pave the way for favorable conditions. GDP growth remained steady at 2.3% for the fourth quarter, and the Fed's preferred inflation measure, PCE Prices, came in right on target. The slight 0.3% rise in the monthly core reading actually helped bring the annual inflation rate down to 2.6% from 2.9%.
Looking ahead, this week presents strong potential for further rate declines, fueled by both economic data and trade policy developments. If the ISM Indices come in below expectations, it could increase concerns about the economy’s momentum, likely leading to even lower mortgage rates. The upcoming employment data will also provide key insights into the labor market and could influence rates in a positive direction. While new tariffs may cause some short-term uncertainty, they could also help keep inflationary pressures in check.
Overall, the outlook is bright, with the possibility of even more favorable mortgage rates in the near future. If you or anyone you know is interested in obtaining mortgage financing, reach out to my team today at 541-815-6596. We’d be happy to help you navigate these favorable conditions!
Comentários