For the week of April 25, 2022
Recap of last week: Rates a little higher
Although mortgage rates did end the week slightly higher, we're seeing signs that rates are stabilizing. Last week's moves were mainly due to markets reacting to the idea that the Fed would need to raise policy rates higher and sooner to get inflation under control.
Mortgage Rate Forecast: Rates may still creep higher
It is looking like mortgage rates could improve a bit to begin the week, as the underlying market that rates are based on starts the week with some gains. However, it is important to realize that any improvements will be small and likely short lived, as rates are still trending higher. Although we could see rates creep up in smaller increments, we are still likely to see at least slightly higher rates as we head into May.
What's affecting rates this week:
- Economic data: A full slate of data, including some housing data and a few Treasury auctions, but not likely much to pressure rates this week.
- Supply chain concerns: China has locked down over 25 million people due to a coronavirus outbreak, some for 3 weeks already, sparking fears of a supply chain crisis since products cannot be manufactured or shipped. This would add to current inflation problems, and pressure mortgage rates higher.
