Last Week's Mortgage Rate Recap: Rates moved higher 👎
Mortgage rates crept higher last week as markets reacted to Fed Chair Jerome Powell saying Thursday that he and other Fed officials remain committed to bringing inflation down to 2% and would not hesitate to raise policy rates further as needed to do so.
This Week's Mortgage Rate Forecast: Rates may be volatile and could move higher ⚠️
This week brings inflation data and retail sales data which both will have an effect on mortgage rates for the week. If data comes in favorably, it could help rates drop a bit, however the current outlook shows that inflation could come in higher than expected and pressure mortgage rates higher.
What's affecting rates this week:
- Economic data: There are concerns that consumer inflation readings on Tuesday could come in higher than expected due to a change in how health care costs are accounted for, which would cause markets to react in a way that could push mortgage rates higher. Wednesday brings wholesale inflation data, although this is generally less of a market mover. Also, if retail sales data on Wednesday shows a strong economy, it could increase concerns about a possible Fed rate hike to come in December, which would pressure mortgage rates higher.