For the week of July 25, 2022
Recap of last week: Rates slightly better
Average mortgage rates continued to improve last week, although we didn't really see rates drop much as more of the gains came in the way of improvements to closing costs instead.
Mortgage Rate Forecast: Rates could see some volatility
Two big events this week could see rates bounce around a bit - the Fed meeting on Wednesday and inflation data on Friday. The bigger picture is still that rates will slowly improve as inflation concerns ease and are replaced by concerns about a recession. We could see rates vary day-to-day this week more than usual, and whether we end the week better or not could depend on Friday's inflation data.
What's affecting rates this week:
- Fed meeting: The Fed will release their rate increase (currently expected to be .75%) and policy statement on Wednesday. Remember, a Fed rate hike is NOT a direct hike to mortgage rates. Instead, mortgage rates usually get at least slightly better after a Fed rate hike.
- Fed press conference: Held after the meeting, Fed Chair Powell's press conference usually causes some movement to rates.
- Economic data: Although this is a full weak of economic and housing data, it is Friday's inflation data that is most likely to affect mortgage rates.
