For the week of January 10, 2022
Recap of last week: Rates moved higher
Mortgage rates moved higher last week, in one of the bigger moves we've seen for rates in quite awhile and much faster than expected. This was due to investors returning from the end of year holidays to renewed inflation concerns and expectations that the Fed may raise rates sooner due to comments in last month's Fed meeting minutes.
Mortgage Rate Forecast: Rates could continue to move higher
Average mortgage rates could unfortunately continue to worsen this week, as investors try to stay ahead of the coming Fed rate increases and react to data showing inflation is still a problem. Although rates are moving higher, they remain near historic lows and it is still a great time to buy a home or consider refinancing for many homeowners.
What's affecting rates this week:
- Economic data: Consumer and wholesale inflation data this week could contribute to rates creeping higher. Treasury auctions could also cause some rate movement this week, depending on investor demand.
- The Fed: Speculation the Fed may raise policy rates as soon as March's meeting, and comments in last month's meeting minutes that the Fed will take steps to reduce balance sheet holdings could pressure rates higher this week.
