For the week of May 23, 2022
Recap of last week: Rates improved slightly
Average mortgage rates ended the week last week just slightly better, although rates did creep a bit higher Tuesday and Wednesday before improving. Rates have stabilized in May, after moving steadily higher the previous few months.
Mortgage Rate Forecast: Rates should remain near current levels
Mortgage rates are settling back to a more normal pattern of moving up or down a bit day to day depending on what is going on in the markets, but not creeping higher and higher as we have seen through most of 2022. That means there is less concern that waiting will automatically result in a higher interest rate. Home prices are still appreciating, despite the higher rates, and there remains no sign of a housing bubble. Rates are not likely to go down too much from here.
What's affecting rates this week:
- Economic data: This week there is a lot of economic data, but it is Friday's inflation data that could make the biggest waves in rates.
- Fed meeting minutes: The minutes from last month's Fed meeting come out on Wednesday, and any surprises could affect mortgage rates this week.
- Memorial Day: The bond market will close early Friday and be closed Monday, and most investors will take a long weekend.
