For the week of March 14, 2022
Recap of last week: Rates got worse
Average mortgage rates moved higher last week as concerns about increasing inflation continued. Rising prices in oil have led to the highest gas prices in U.S. history, which are pushing the price of goods higher as items get more expensive to make and transport.
Mortgage Rate Forecast: Rates likely to creep higher
Mortgage rates are likely to worsen this week, driven by the Ukraine/Russia war and the Fed meeting, unless something happens in Ukraine to spook investors to safe havens.
What's affecting rates this week:
- Economic data: Tuesday brings wholesale inflation data and Wednesday brings retail sales data, both of which may have a small effect on rates. Housing data this week, while important to monitor, is not likely to affect rates.
- Ukraine/Russia: Rates are no longer seeing clear benefits of investors moving to safe haven bonds, as instead concerns about the war's impact on the global economy take front stage.
-The Fed: The Fed will release its policy statement Wednesday afternoon, as well as the forecast of Fed members on where rates will be over the next couple of years. The announcement as well as Fed Chair Jerome Powell's subsequent press conference have the potential to be bad for rates.
