For the week of January 24, 2022
Recap of last week: Rates slightly worse
Average mortgage rates ended last week just slightly worse, improving as the week went on after opening Tuesday with worse rates (markets were closed Monday in observance of MLK Day). Mortgage rates have moved higher to start the year as the economy and labor market return to pre-pandemic levels.
Mortgage Rate Forecast: Rates could be volatile
Mortgage rates should be stable and possibly slightly better to start the week, but Wednesday's Fed meeting policy statement and press conference are likely to cause volatility. It is a good idea to stay in contact with your mortgage professional this week, especially if you are at a point in your mortgage process where you are considering locking.
What's affecting rates this week:
- Fed Meeting: This week's Fed meeting is likely to cause rates to move, with a higher likelihood that rates could get worse rather than improve. Investors will be looking for signs of how aggressive the Fed will be in fighting inflation, as well as signs of when the Fed will begin reducing its balance sheet.
- Concerns over Russia and Ukraine: Escalating tension in the region is pushing investors to take a risk-off stance, helping bonds to improve which helps mortgage rates.
