For the week of March 20, 2023

Recap of last week: Rates moved lower

Mortgage rates improved again last week, for a second week in a row, as concerns about the global banking system continued to lead markets to believe that the Fed will not be able to raise rates as high as was expected just a few weeks ago.

Mortgage Rate Forecast: Rates will be volatile

This week could see some of the most volatile mortgage rates we've seen in months, with rates moving day-to-day as well as during the day, depending on how the Fed meeting plays out and if there is anymore fallout in the banking sector. This is a good week to stay in close contact with your mortgage professional.

What's affecting rates this week:
Fed fireworks: The Fed meets this week, and for the first time in over a year there is a question of if it will raise its policy rate and by how much. The Fed will release its policy statement at 2pm ET on Wednesday along with a forecast of its policy rate called the 'dot plot', followed by a press conference by Fed Chair Powell. This is the first time the Fed will be able to comment on the recent 'banking crisis' events after being in a media blackout period ahead of the FOMC meeting. Depending on what is said and how markets react, we could see rates fall lower or move quickly higher.