Soft Fed Statement Helps Rates
The big event last week was Wednesday’s Fed meeting. A dovish Fed statement was positive for mortgage rates. The additional economic data released over the past week closely matched expectations, so it had little impact. Mortgage rates ended the week slightly lower.
The U.S. Fed made no change in the federal funds rate, as expected. There were few changes in the statement from the last statement following the March meeting. In the statement, the Fed acknowledged that the labor and housing markets continued to improve, but they said that overall economic activity “appears to have slowed.” The statement also removed language about inflation increasing in recent months. The dovish statement, meaning that the Fed favors keeping monetary policy loose for longer, caused mortgage rates to improve after its release.
Factors: The important monthly Employment report will be released on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month.
Check back weekly to find our mortgage industry updates. For specific rates, contact a Tradition Mortgage loan officer directly.