For the week of August 8, 2022
Recap of last week: Rates slightly worse
Average mortgage rates started off last week improving, but ended the week higher after strong jobs and unemployment data showed the labor market wasn't yet cooling off. The number of new jobs created was more than double what was forecast, and unemployment numbers fell. A strong labor market means the Fed is more likely to raise rates higher at the September Fed meeting, and mortgage rates were negatively impacted on the speculation.
Mortgage Rate Forecast: Rates could see some volatility
Mortgage rates this week could move significantly day-to-day based on how markets react to consumer and wholesale inflation data as well as consumer sentiment readings. The longer term outlook is still good for rates, but it is a good week to stay in touch with your mortgage professional if you have a loan closing soon.
What's affecting rates this week:
- Economic data: Consumer inflation data comes in on Wednesday, and wholesale inflation data comes in Thursday. Consumer sentiment data comes in on Friday. If markets see inflation peaking or retreating, that will be good for rates, but if inflation is strong that could be bad for rates this week.
- Fed speakers: Multiple Fed speakers this week could influence rates.
