Mortgage rates continued higher last week, as the Fed signaled that it would likely raise its policy rate one more time in 2023 and hold that rate higher for longer into 2024.

Mortgage rates are likely to continue higher this week as markets digest the Fed's message that it will continue to be aggressive in fighting inflation by raising rates and holding them longer. Since the Fed's rate influences all rates out there, from car loans to credit cards to mortgage rates, it makes it unlikely we will see mortgage rates move lower anytime soon.

- Oil prices: Higher oil prices along with supply scarcity will likely drive up the price of fuel at the pump, which is inflationary and not good for mortgage rates.

- Global bond prices: Increases in bond yields in Europe will contribute to higher bond yields here in the U.S., which pressures mortgage bond pricing and pushes mortgage rates higher.

- Fed speakers: Fed members will continue speaking about the need to be aggressive fighting inflation, which means another future rate hike and holding higher rates for a longer period of time in 2024.