For the week of May 2, 2022
Recap of last week: Rates improved slightly
Average mortgage rates improved early last week but ended the week justly slightly better after losing some ground on Friday after higher than expected inflation readings came out. Rates continued to show signs of stabilizing overall though, after rising dramatically to begin the year.
Mortgage Rate Forecast: Rates could be volatile
This week we could see rates change not only day-to-day but also during the day as markets react to this week's Fed meeting. We also have some important economic data on Friday that could cause some movement. It is possible we could see rates move higher this week, depending on how the week plays out, but unlikely we see them improve much.
What's affecting rates this week:
- Economic data: A week full of economic data, but Friday's jobs data has the most potential to affect mortgage rates this week.
- China shutdowns: China's lock downs due to covid are rippling through markets and causing inflation concerns that could pressure rates.
- Fed meeting: By far the biggest event of the week, Wednesday we get the Fed policy statement with an expected rate hike of .50% to policy rates followed by Fed Chair Jerome Powell's press conference. Expect possible rate volatility on Wednesday.
