Idaho Mortgage Rate Update: Steady Rates and Market Insights

Today’s Rate Sheet Overview

Mortgage rates today are expected to hold steady, similar to yesterday’s rates or slightly better. Unless significant data is released at 10 am ET, there’s low risk of major rate changes. Traders are also likely to take off early, which can keep the rates stable.

Mortgage Bonds and Treasury Yields

Both mortgage bonds and the 10-year Treasury yield started the day positively, thanks to weaker-than-expected manufacturing and services data from Europe’s largest economies. This data supports potential rate cuts from the European Central Bank, similar to how weak U.S. economic data can support Federal Reserve rate cuts. However, mortgage bonds have been losing those initial gains, and currently, they’re up only slightly.

Key Factors Affecting Mortgage Rates This Week

1. Economic Data

• Thursday: The final GDP numbers for the first quarter will be released. This data is unlikely to have a significant impact on mortgage rates.

2. Inflation Data

• Friday: The Federal Reserve’s preferred inflation gauge is expected to show the slowest inflation since late last year. This could open the door for potential Fed rate cuts later this year.

3. Federal Reserve Actions

• Mortgage rates are likely to remain near current levels as long as the market expects the Fed to cut rates later this year. Currently, markets anticipate the Fed will start cutting rates in September, with two cuts by the end of the year. If upcoming economic and labor data suggest the Fed needs to cut rates sooner, it could help improve mortgage rates. Next week’s labor market data will be crucial.

Stay tuned for updates, and feel free to contact us at Home Loans of Idaho for any questions or personalized mortgage advice.