For the week of October 17, 2022

Recap of last week: Rates slightly higher
Average mortgage rates once again started the week off better before ending the week just slightly higher. Rates at least showed signs of stabilizing last week despite inflation data showing no signs of improvement yet.

Mortgage Rate Forecast: Rates likely to remain elevated
Mortgage rates are not likely to make any significant improvements this week, but could at least hold steady rather than moving higher as we've grown used to seeing each week. Expectations that the Fed will raise policy rates .75% at both the November and December meetings, and .5% at the February meeting make it unlikely rates will fall much from here.

What's affecting rates this week:
- Economic data: This week has a few housing reports, including housing starts and existing home sales, which will likely show the housing market has slowed down. However, these reports shouldn't affect rates much this week.
- Overseas markets: Rates have been helped to start the week by new UK finance minister Jeremy Hunt scrapping an economic plan by his predecessor that previously caused global bond markets to falter and pushed U.S. mortgage rates higher a couple of weeks ago. Markets have reacted positively to his moves to reverse course.