For the week of June 20, 2022
Recap of last week: Rates moved higher
Rates moved higher last week, with the highest rates coming Monday and Tuesday before the Fed meeting on Wednesday as markets reacted to the previous week's inflation data. The Fed raised the fed funds rate by 0.75%, a significant increase meant to fight inflation, which actually helped mortgage rates improve from the highest levels seen since 2008.
Mortgage Rate Forecast: Rates could be volatile
Markets will reopen Tuesday after observing Juneteenth and mortgage rates this week could continue to be volatile, moving up and down significantly as markets come to terms with the current economic picture. However, there is a pretty good chance that rates could improve on the week, at least slightly, now that rates have adjusted for the expectations of more aggressive Fed rate hikes to come in July and September. That said, we aren't yet in a position to expect rates to fall too far from here.
What's affecting rates this week:
- Inflation: Ongoing concerns about inflation continue to pressure mortgage rates higher.
- The Fed: Fed Chair Jerome Powell will appear in front of Congress this week in his semi-annual monetary policy report, and his prepared as well as live comments could affect rates this week.
