For the week of February 7, 2022
Recap of last week: Rates slightly worse
Average mortgage rates once again moved higher last week, first on Thursday as markets reacted to comments made by European Central Bank President Christine Lagarde, and then on Friday as stronger than expected jobs data pushed markets to price in a larger Fed rate increase at March's Fed meeting.
Mortgage Rate Forecast: Rates unlikely to improve much
Although mortgage rates are not likely to increase much this week, it is unlikely we will see rates improve. Although it is natural to want to 'chase' rates that were available only a few weeks ago, consumers should be careful not to miss out on the current rates by doing so. Rates are more likely to creep higher than to move lower this week.
What's affecting rates this week:
- The Fed: Expectations are increasing that the Fed will raise policy rates at March's Fed meeting by half a percent rather than a quarter percent, which is pushing mortgage rates higher in anticipation of the move. As the probability of a larger hike increases, we could see mortgage rates creep higher.
- Economic Data: Thursday brings more inflation data, and if inflation remains high as is expected, it could pressure mortgage rates higher.
