Mortgage rates moved higher last week, despite consumer inflation data coming in at or better than expectations. Rates started the day Thursday improved, but most lenders repriced to worse rates as the day progressed and markets lost ground. Friday was another bad day for rates.

This week doesn't show any signs that rates may improve, and there isn't a lot of economic data to look to for help. The outlook right now is that rates may move to the highest levels of the year this week and are not likely to improve much from here in the foreseeable future.

- Economic data: Not much on the calendar this week that will affect rates, but markets will be watching Tuesday's retail sales data and Thursday's unemployment claims. Signs of a strong economy are not good for mortgage rates.

- The Fed: Mortgage rates will struggle to improve if markets increase expectations that the Fed could raise its policy rate again this year. Mortgage rates will not move much lower until the Fed begins cutting its policy rate, which isn't expected to happen until sometime next year at the earliest.