For the week of May 16, 2022
Recap of last week: Rates improved
Mortgage rates improved last week after hitting some of the highest rates seen since 2018 the previous week. Last week's inflation data showed inflation is still a problem, but was slightly better than the previous month.
Mortgage Rate Forecast: Rates should hold steady, could possibly improve slightly
Mortgage rates should continue to stabilize this week, meaning that we shouldn't see rates continue to creep higher week after week as we have seen through most of 2022. Markets have already priced in the next couple of expected half point Fed rate hikes in June and July, giving mortgage rates a chance to settle down. It is unlikely we see rates drop significantly from here, and although rates may fluctuate up and down a bit like normal we don't appear to be at risk of rapidly rising rates this week.
What's affecting rates this week:
- Economic data: This week's economic data includes retail sales and housing reports, but shouldn't affect rates for the week.
- Fed rate hikes: The Fed is expected to raise rates at the next couple of meetings, but comments by Fed officials have markets anticipating half point rate hikes which have already been accounted for. If something changes here, it could affect rates.
