11/07/2022
๐ก ๐๐ผ๐ฟ ๐๐ต๐ฒ ๐๐ฒ๐ฒ๐ธ ๐ผ๐ณ ๐ก๐ผ๐๐ฒ๐บ๐ฏ๐ฒ๐ฟ ๐ณ, ๐ฎ๐ฌ๐ฎ๐ฎ
๐ฅ๐ฒ๐ฐ๐ฎ๐ฝ ๐ผ๐ณ ๐น๐ฎ๐๐ ๐๐ฒ๐ฒ๐ธ: ๐ฅ๐ฎ๐๐ฒ๐ ๐ฐ๐ฟ๐ฒ๐ฝ๐ ๐ต๐ถ๐ด๐ต๐ฒ๐ฟ ๐
Average mortgage rates moved higher last week when Fed Chair Jerome Powell signaled that the Fed is likely to raise the policy fed funds rate higher in 2023 than was expected. Although Powell said that future rate hikes will come in smaller increases, it was the outlook of a higher end rate that caused mortgage rates to worsen last week.
๐ ๐ผ๐ฟ๐๐ด๐ฎ๐ด๐ฒ ๐ฅ๐ฎ๐๐ฒ ๐๐ผ๐ฟ๐ฒ๐ฐ๐ฎ๐๐: ๐ฅ๐ฎ๐๐ฒ๐ ๐ฐ๐ผ๐๐น๐ฑ ๐บ๐ผ๐๐ฒ ๐ต๐ถ๐ด๐ต๐ฒ๐ฟ ๐
This week we will get the October CPI consumer inflation data, which could pressure mortgage rates to move higher. Expectations are that inflation will show some signs of decreasing, but unless this report shows inflation has moved significantly lower, it will be perceived to support the higher Fed rate hiking and is not good for mortgage rates. Only a surprisingly big drop in inflation would support rates improving this week, which is risky to hope for.
๐๏ธ ๐ช๐ต๐ฎ๐'๐ ๐ฎ๐ณ๐ณ๐ฒ๐ฐ๐๐ถ๐ป๐ด ๐ฟ๐ฎ๐๐ฒ๐ ๐๐ต๐ถ๐ ๐๐ฒ๐ฒ๐ธ:
- Economic data: There is not a lot of data this week, but the CPI inflation data on Thursday is a big report and could cause a shake up in rates. Strong inflation data will hurt mortgage rates.
- Veterans Day: Markets will be closed Friday, as will be many lenders. Lenders tend to set rates more conservatively over long holiday weekends as well.