For the week of October 24, 2022
Recap of last week: Rates slightly higher
Mortgage rates moved higher last week, although not by much, as markets continued to prepare for the Fed to raise policy rates at the next few meetings heading into 2023.
Mortgage Rate Forecast: Rates could be volatile
Mortgage rates could make sudden, big moves this week as data comes out on consumer spending and inflation. Traders will be looking for signs on what the Fed will do after next week's meeting, since a .75% fed funds rate hike is already expected. Next week will also be volatile because of the scheduled Fed meeting and press conference, making it a good time to discuss your unique situation with your mortgage professional and deciding if locking a rate would be a good option for you if available.
What's affecting rates this week:
- Economic data: This week has quite a bit of data, as well as a few Treasury auctions. Tuesday's consumer confidence data and Thursday's durable goods orders could play a roll in rates for the week, but Friday's PCE inflation report will have the most impact on rates.
- Overseas Central Banks: The European Central Bank meeting is on Thursday and the Bank of Japan's meeting is on Friday. Their moves to curb overseas inflation could affect rates here this week.
