For the week of July 5, 2022

Recap of last week: Rates slightly better
Average mortgage rates last week were slightly worse to begin the week, but turned the corner midweek and continued to improve to end the week slightly better after hitting the worst levels of the year a few weeks ago. Last week's improvements were mainly due to concerns that the economy will go into a recession caused by the Fed's aggressive rate hikes to bring down inflation.

Mortgage Rate Forecast: Rates could see some volatility
Average mortgage rates this week a bit tougher to forecast, because the direction will hinge on how markets react to the Fed's minutes from last month's meeting as well as jobs data later in the week. After improving quite a bit the last couple of weeks, we may see rates pause for awhile before improving further. Whichever direction things go, we aren't likely to see significant improvement or worsening this week.

What's affecting rates this week:
- Recession fears: Concerns that the aggressive Fed rate hikes to come will cool off the economy have investors looking to the safety of bonds, helping mortgage rates.
- Economic data: Most data won't affect rates, but Friday's jobs data could.
- The Fed: Minutes from last month's Fed meeting on Wednesday could affect rates this week.