Mortgage-Rates-News – for the week of January 16, 2023

Average mortgage rates improved a bit further last week, with consumer inflation data coming in that showed inflation was moving lower, as economists had forecast. Although we didn't see a big drop, the small improvement was welcome with rates much lower than the highs near the end of 2022.

This week mortgage rates are likely to be relatively unchanged, with some small day-to-day movement but not any big moves for the week. Mortgage rates are likely to hold near current levels this week and next week, ahead of the Fed meeting at the end of the month.

- Economic data: Wholesale inflation data comes in on Wednesday, and economists are expecting wholesale inflation to be cooling alongside consumer inflation. Also, on Wednesday the retail sales data comes out, and if it shows spending is falling would help support lower mortgage rates.

- The Fed: Current mortgage rates are based on the speculation that the Fed policy rate will peak at 4.75% by March. If markets start to believe that the Fed will raise the policy rate higher, based on strong economic data, it will pressure mortgage rates higher.

Conventional 30 year fixed ($ 726,200 loan amount or less)  

5.625 to 5.875% with points

FHA 30 year fixed ($ 726,200 loan amount or less)

5.375% to 5.625% with points

VA 30 year fixed ($ 726,200 loan amount or less)

5.375 to 5.625% with points