Last week’s employment report caused a brief panic in the markets, but this week’s lighter economic calendar allowed some of that tension to ease. By Thursday, 10-year Treasury yields had retraced back to 4.00%. However, there’s still concern that the Federal Reserve may be waiting too long to ease monetary policy, which could lead to more volatility in the coming weeks.

Two key inflation readings are expected next week, along with Retail Sales and housing data. These reports could provide more clarity on the Fed’s next move. While most don’t expect an emergency rate cut before the scheduled September meeting, a 50 basis point cut in September is possible if inflation continues to decline and the economy shows signs of rapid slowing.

Next week’s data releases will be essential to watch for signs of where the market might be headed, especially for those keeping a close eye on interest rates and the housing market’s direction. Work closely with your loan officer about the best time to lock in a rate for you and your qualified clients. While many are anticipating a downward trend, there is volatility expected.