For the week of February 28, 2022
Recap of last week: Rates unchanged
Average mortgage rates were worse to start the week after a 3-day weekend, but ended the week nearly unchanged after geopolitical concerns caused by the Russian invasion of Ukraine caused investors to seek safety in bonds, which normally helps mortgage rates.
Mortgage Rate Forecast: Rates could improve slightly
Mortgage rates are not likely to improve much, but could improve slightly this week from concerns about the sanctions imposed against Russia for invading Ukraine. Investors are worried that sanctions could affect the global economy, especially Europe's economy, which relies on Russian energy. Expectations of a Fed policy rate increase in March still remain, although markets now believe the Fed will only raise rates a quarter percent rather than the previously expected half point.
What's affecting rates this week:
- Economic data: A full week of data, but Friday's jobs data has the most potential to affect rates.
- The Fed: Mortgage rates may be helped this week by expectations of a smaller rate hike at the March Fed meeting.
- Russia/Ukraine: Russia has now invaded Ukraine, and continued pressure from western nations to retreat could help mortgage rates improve slightly.
