Mortgage rates started the week with some improvement as lower oil prices and improving market conditions provide some support.
Attention is now shifting to what comes next, including oil prices, inflation, future Fed decisions, and how global interest rates may affect U.S. markets.
Last week, the Fed raised its short-term rate and signaled that another increase is possible this year if inflation remains elevated. Markets are now weighing what that could mean for interest rates in the months ahead.
Lower oil prices are providing some support today and may help ease inflation pressure. Markets are also watching Japan, where changes in interest rates and currency values can affect U.S. interest rates and mortgage rates.
What This Means
Mortgage rates are still reacting to changing expectations for the Fed and the economy. Lower oil prices are helping provide some support, but rates can continue to move as new information comes in.
Looking Ahead
This week’s economic calendar is light, with New Home Sales receiving the most attention. Markets will also watch interest rates and global developments for clues about where mortgage rates may move next.
Miguel Terrazas
Mortgage Planner/Planificador Hipotecario // NMLS #227518
