For the week of January 3, 2022
Recap of last week: Rates remained low
Average mortgage rates last week were basically unchanged, as investors took the remainder of the year off and markets were quiet. There were no big economic data releases or other events to cause mortgage rates to move.
Mortgage Rate Forecast: Rates should remain low, but could worsen
Average mortgage rates remain low, but there are some signs to start the week that we could see rates get a bit worse. Most consumers are more likely to see slightly higher closing costs than actual rate increases though, even if we do see some worsening. The outlook is good that mortgage rates will remain low through January, but could creep up a little bit on concerns about pending Fed rate increases.
What's affecting rates this week:
- Economic data: A few reports will be released this week, but Friday's job's data is the only one likely to have any effect on rates.
- Omicron: The latest variant is still playing a small role in rates, as investors remain concerned about high case counts and the possible effect on the global economy.
- The Fed: The minutes from the Fed's last meeting will be released on Wednesday, and we could see a negative reaction from mortgage rates depending on how investors react to what is in the minutes.
