Mortgage rates are under pressure today as markets react to higher oil prices and look ahead to Wednesday’s Federal Reserve decision.
Markets are focused on oil, inflation, and the Fed for clues about where mortgage rates may move next.
Oil prices moved higher today after new disruptions affected major transportation routes in the Middle East. Higher energy costs can add to inflation, which has kept some pressure on mortgage rates.
At the same time, markets are expecting the Fed to raise its short-term rate on Wednesday. While a rate increase may sound negative, markets could respond favorably if investors believe the Fed is taking inflation seriously.
What This Means
Mortgage rates remain sensitive to inflation and oil, but Wednesday’s Fed decision could bring more clarity. Markets will also be listening closely to what the Fed says about inflation and what it may do next.
Looking Ahead
Wednesday’s Fed decision remains the main event this week. Markets will also watch retail sales, housing reports, and jobless claims for additional signs of how the economy is holding up.
Miguel Terrazas
Mortgage Planner/Planificador Hipotecario // NMLS #227518
