--- title: May Ends With Rate Relief description: This past week interest rates moved lower on optimism the debt ceiling will be lifted and on surprisingly low inflation out of Europe. image: https://info.carringtonmortgage.com/hubfs/Market-Trends-06-02-2023.jpg --- [Skip to content](https://info.carringtonmortgage.com/knowledge-base/may-ends-with-rate-relief#main-content) ![bell icon](https://info.carringtonmortgage.com/hubfs/raw_assets/public/Templates/2022/svg/Alert-Notifications-Icon.svg) [![Carrington Mortgage Services](https://info.carringtonmortgage.com/hs-fs/hubfs/carrington_logo_final_2col_rgb.png?width=250&height=57&name=carrington_logo_final_2col_rgb.png)](https://www.carringtonmortgage.com) - [About Us](https://www.carringtonmortgage.com/our-mission) - [Careers](https://www.carringtonhc.com/careers) - [Investors](https://www.carringtonhc.com/investors) - [Contact Us](https://www.carringtonmortgage.com/contact-us) [Recent Transfer](https://www.carringtonmortgage.com/new-customers) [Customer Login](https://www.carringtonmortgage.com/login) MAKE HOME WORK Manage My Home arrow-down-anticon/submenu Manage My Mortgage arrow-down-anticon/submenu Learning Center MAKE HOME WORK Manage My Home arrow-down-anticon/submenu - I Am Ready to Start - [Buy a Home](https://www.carringtonmortgage.com/home-loans/buy-a-home/check-existing-customer) - [Refinance My Home](https://www.carringtonmortgage.com/home-loans/refinance-a-home/refinance-step) - What Loan Is Right For Me? - [Purchase Options](https://www.carringtonmortgage.com/home-loans/buy-a-home) - [Refinance Options](https://www.carringtonmortgage.com/home-loans/refinance-a-home) - What is Involved in Getting a Loan? - [The Loan Process](https://www.carringtonmortgage.com/tools/loan-process) - I Want to Calculate... - [Monthly Mortgage Payment](https://www.carringtonmortgage.com/tools/calculators) - [Home Affordability](https://www.carringtonmortgage.com/tools/calculators#affordability) - [Cost to Refinance](https://www.carringtonmortgage.com/tools/calculators#refinance) - [Loan Comparison](https://www.carringtonmortgage.com/tools/calculators#comparison) - Partner With Us - [Home Builders](https://www.carringtonmortgage.com/Partner-with-Us/home-builders) - [Real Estate Agents](https://www.carringtonmortgage.com/Partner-with-Us/real-estate-agents) - I Have Questions - [Need an Expert](https://www.carringtonmortgage.com/find-an-expert) Manage My Mortgage arrow-down-anticon/submenu - I Just Had My Loan Transferred Here - [New to Carrington Onboarding?](https://www.carringtonmortgage.com/new-customers) - How Do I Repay My Loan - [Payment Options](https://www.carringtonmortgage.com/payment-options) - [Payoff Statement](https://www.carringtonmortgage.com/payoff-statements) - What Are Servicing Fees? - [See the Schedule of Fees](https://www.carringtonmortgage.com/schedule-of-fees) - I Need Help With - [Mortgage Assistance](https://www.carringtonmortgage.com/mortgage-assistance) - [Disaster Assistance](https://www.carringtonmortgage.com/disaster-assistance) Learning Center - [About Us](https://www.carringtonmortgage.com/our-mission) - [Careers](https://www.carringtonhc.com/careers) - [Investors](https://www.carringtonhc.com/investors) - [Contact Us](https://www.carringtonmortgage.com/contact-us) --- Recent Transfer --- Customer Login [Work Trends](https://info.carringtonmortgage.com/knowledge-base/tag/work-trends) # May Ends With Rate Relief [CMS Marketing](https://info.carringtonmortgage.com/knowledge-base/author/cms-marketing) [![Share on Facebook](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/facebook.png?width=24&name=facebook.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fmay-ends-with-rate-relief%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/linkedin.png?width=24&name=linkedin.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fmay-ends-with-rate-relief%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/twitter.png?width=24&name=twitter.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fmay-ends-with-rate-relief%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fmay-ends-with-rate-relief%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=May%20Ends%20With%20Rate%20Relief) [![Share on Pinterest](https://static.hubspot.com/final/img/common/icons/social/pinterest-24x24.png)](http://pinterest.com/pin/create/button/?url=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fmay-ends-with-rate-relief%3Futm_medium%3Dsocial%26utm_source%3Dpinterest&media=https%3A%2F%2Fcms.carringtonhomeloans.com%2Fhubfs%2FEHO%2Fpinterest.png) [![Share on Email](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/email.png?width=24&name=email.png)](mailto:?subject=Check%20out%20https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fmay-ends-with-rate-relief%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fmay-ends-with-rate-relief%3Futm_medium%3Dsocial%26utm_source%3Demail) ![](https://info.carringtonmortgage.com/hubfs/Market-Trends-06-02-2023.jpg) This past week interest rates moved lower on optimism the debt ceiling will be lifted and on surprisingly low inflation out of Europe. Let’s discuss what happened and investigate the week ahead. **Debt Ceiling Fix Coming**  As of this writing, the House of Representatives passed a bill to suspend the U.S. debt limit through the 2024 election. Included in the bill are non-defense spending caps, expansion of work requirements for some food stamp recipients as well as a clawing back of unused COVID-19 relief funds. This bill now goes to the Senate where it will need to be approved and then sent to President Biden’s desk for signing before the June 5th deadline, where it is believed the U.S. would no longer have funds to pay its debt. In response to the optimism, short-term treasury yields like one-month bills moved sharply lower as the fear of default is removed. This decline in yields spread across the entire bond market, with the 10-year note yield moving from 3.80% to 3.60% in the matter of days. **Fed Pause in June** A couple of key Federal Reserve officials spoke this week and suggested the central bank should not raise rates at the next Federal Open Market Committee on June 14th. Why? They are citing the policy lag effect and its uncertain impact. Essentially, the Fed has already raised interest rates from 0.0% to 5.00% in a little over a year, most of which has yet to seep into the economy. With inflation declining, the economy slowing and the banking crisis lingering, it is probably a good time for the Fed to pause. On Thursday, the inflation reading unit labor costs, within Q1 Productivity, came in well below expectations. This means it is costing less for businesses to produce, which is disinflationary and another reason for the Fed to take a break from rate hikes. **Low Inflation Surprises in Europe** This past week, Germany, Spain, and other countries reported inflation was well below market expectations. As a result, yields in Europe declined, and that helped U.S. yields to move lower as well. If the trend of lower inflation continues here in the states, and in Europe, we should expect rates to continue to decline. **Bottom line:** *With some of the uncertainty surrounding the debt limit deal lifted and with inflation data cooling, the mortgage market could see a continued ease in borrowing costs.* ## Related Articles [![Market\_Trends\_2019-10-21](https://info.carringtonmortgage.com/hubfs/Market_Trends_2019-10-21.jpg)](https://info.carringtonmortgage.com/knowledge-base/three-reasons-why-rates-ticked-higher) [Market Trends](https://info.carringtonmortgage.com/knowledge-base/tag/market-trends) ### [Three Reasons Why Rates Ticked Higher](https://info.carringtonmortgage.com/knowledge-base/three-reasons-why-rates-ticked-higher) **Last Week in Review:** Optimism Hurts Rates [Jordan](https://info.carringtonmortgage.com/knowledge-base/author/jordan) [Read More](https://info.carringtonmortgage.com/knowledge-base/three-reasons-why-rates-ticked-higher) [![](https://www.carringtoncorrespondent.com/wp-content/uploads/2019/10/Market_Trends_2019-10-28-300x199.jpg)](https://info.carringtonmortgage.com/knowledge-base/the-remedy-for-higher-rates) [Market Trends](https://info.carringtonmortgage.com/knowledge-base/tag/market-trends) ### [The Remedy for Higher Rates](https://info.carringtonmortgage.com/knowledge-base/the-remedy-for-higher-rates) **Last Week in Review:** The Remedy for Higher Rates [Jordan](https://info.carringtonmortgage.com/knowledge-base/author/jordan) [Read More](https://info.carringtonmortgage.com/knowledge-base/the-remedy-for-higher-rates) ## Mortgage & Lending Services - [Buy a Home](https://www.carringtonmortgage.com/home-loans/buy-a-home) - [Refinance a Home](https://www.carringtonmortgage.com/home-loans/refinance-a-home) - [Mortgage Calculators](https://www.carringtonmortgage.com/tools/calculators) - [The Loan Process](https://www.carringtonmortgage.com/tools/loan-process) - [Find an Expert](https://www.carringtonmortgage.com/find-an-expert) - [Home Builders](https://www.carringtonmortgage.com/Partner-with-Us/home-builders) - [Real Estate Agents](https://www.carringtonmortgage.com/Partner-with-Us/real-estate-agents) ## Terms - [Privacy Policy](https://www.carringtonmortgage.com/legal/privacy-policy) - [California Consumer Privacy Act Notice](https://www.carringtonmortgage.com/legal/ccpa-notice) - [State Licensing](https://www.carringtonmortgage.com/legal/state-licensing) - [Terms and Conditions](https://www.carringtonmortgage.com/legal/terms-conditions) - [Best Practices](https://www.carringtonmortgage.com/legal/best-practices) - [Fair Lending Statement / HMDA Notice](https://www.carringtonmortgage.com/legal/fair-lending-statement) - [Consumer Fraud Alert](https://www.carringtonmortgage.com/legal/consumer-fraud-alert) - [Equal Opportunities](https://www.carringtonmortgage.com/legal/Equal-opportunities) ## Manage Your Mortgage - [Payment Options](https://www.carringtonmortgage.com/payment-options) - [Mortgage Assistance](https://www.carringtonmortgage.com/mortgage-assistance) - [Disaster Assistance](https://www.carringtonmortgage.com/disaster-assistance) - [Scheduling Servicing Fee](https://www.carringtonmortgage.com/schedule-of-fees) - [Payoff Statements](https://www.carringtonmortgage.com/payoff-statements) ## Contact Us - Current Customers ## About Us - [Our Mission](https://www.carringtonmortgage.com/our-mission) - [Foundation](https://www.carringtoncf.org) - [Holding Company](https://www.carringtonhc.com) - [Accessibility](https://www.carringtonmortgage.com/accessibility) - [Press and Media](https://www.carringtonmortgage.com/pressandmedia) - [Contact us](https://www.carringtonmortgage.com/contact-us) ## Get the App [![](https://info.carringtonmortgage.com/hs-fs/hubfs/raw_assets/public/Templates/2022/svg/Carrington-mobile-apple.jpg?width=135&height=42&name=Carrington-mobile-apple.jpg)](https://apps.apple.com/us/app/carrington-mobile/id1673471360) [![](https://info.carringtonmortgage.com/hs-fs/hubfs/raw_assets/public/Templates/2022/svg/White-Google-1.jpg?width=135&height=42&name=White-Google-1.jpg)](https://play.google.com/store/apps/details?id=com.carringtonms.CMSMobile2&pli=1) [Icon-Facebook](https://www.facebook.com/CarringtonHomeLoans/) [Icon-Twitter](https://twitter.com/CarringtonMS) [Icon-Linkedin](https://www.linkedin.com/company/carrington-mortgage-services-llc) [Icon-Instagram](https://www.instagram.com/carringtonmortgage/) Icon-EHO Consumer Access NMLS ID #2600 | Copyright 2026 Carrington Mortgage Services, LLC. All rights reserved.