For the week of March 28, 2022
Recap of last week: Rates moved higher
Mortgage rates got worse last week, pushed higher as markets reacted to continued high inflation and comments by Fed Chair Jerome Powell that the Fed would take the necessary steps to curb it. Although the Fed doesn't set mortgage rates, mortgage rates are influenced by Fed actions.
Mortgage Rate Forecast: Rates could move higher
Mortgage rates have a good chance of continuing higher this week as investors continue to react to increased inflation and the Fed increasing policy rates. There is almost zero chance that rates will move lower from here this week or anytime soon, based on the economic conditions we are currently faced with. Online rate quotes and ads should be ignored and it is important that you discuss your unique situation with your mortgage professional, and understand that we have seen an unprecedented surge higher in rates for all lenders.
What's affecting rates this week:
- Economic data: Not much to worry about, only Friday's jobs data has potential to affect rates.
- Inflation: An ongoing concern of high inflation, made worse by the war in Ukraine, continues to be the main driver for rates as it forces the Fed to raise policy rates to try and slow it down.
