For the week of May 9, 2022

Recap of last week: Rates slightly higher
Average mortgage rates moved higher last week as markets adjusted to the Fed's half point rate increase and Fed Chair Jerome Powell's press conference. It is important to note that although the Fed's actions and comments did lead to rates creeping higher, the Fed does not set mortgage rates and mortgage rates did not move a half point higher.

Mortgage Rate Forecast: Rate movement dependent on inflation data
Although the overall trend is for rates to creep higher, we could see rates improve a little bit as long as we don't get a negative reaction to this week's inflation data. However, if the reaction is negative, rates could worsen slightly.

What's affecting rates this week:
- Economic data: A quiet week for data, but Wednesday's consumer inflation data and to a lesser extent Thursday's wholesale inflation data could affect rates this week.
- China shutdowns: China's lockdowns continue, causing concerns that supply chain interruptions could once again contribute to higher inflation, which is not good for rates.
- Fed speakers: Markets are listening to Fed officials' comments, looking for clues on the Fed's intended actions. It is possible we could see comments that help or pressure rates this week.