For the week of April 10, 2023

Recap of last week: Rates moved lower 👍🏻
In the middle of last week average mortgage rates hit some of the lowest levels seen since January, before rising on Friday as strong jobs data pushed markets to expect the Fed to hike its policy rate again in May. Rates still ended the week slightly lower.

Mortgage Rate Forecast: Rates could be volatile ⚠️
Mortgage rates will find direction this week depending on how markets react to inflation data, as well as speculation of a possible Fed rate hike in May. Markets are expecting a rate hike to come, but if that changes we could see rates improve. We could see rates move more than normal this week, with Wednesday likely to be the most volatile day for rates.

What's affecting rates this week:
- Economic data: This week we will get the CPI consumer inflation data for March, which if it shows inflation is slowing down could help mortgage rates. A report showing that inflation remains stubborn though could see rates move slightly higher. Wholesale inflation data comes out on Thursday, with a smaller chance of affecting rates.
- Fed minutes: The minutes from last month's Fed meeting will be released on Wednesday, and markets will be looking for signs on whether the Fed will hike its rate in May or not.