Raphael Bostic a voting member and Fed President said he thinks inflation will continue to come down, but slowly. He has talked to a lot of business leaders, and they are all telling him that things are slowing down.

Leading Economic Index

The Conference Board released their LEI, which decreased in April by 0.6%. We have had 22 months of negative readings in a row. This points to serious headwinds to growth ahead.

What’s going on this week

• Tuesday: CoreLogic Rent Index
• Wednesday: Mortgage Apps, Existing Home Sales, 20-year bond Auction, Fed Minutes
• Thursday: initial Jobless Claims, New Home Sales
• Friday: Durable goods Orders.

How will this affect Mortgage Rates?

What the Federal Reserve is hearing from the market aligns with the broader economic observations both anecdotally and technically. This indicates that the Fed is analyzing the data and recognizing that a recession may not be imminent. However, they might need to reconsider implementing rate cuts sooner rather than later.

Translation

Mortgage Rates should move in a positive direction moving forward.