Mortgageย ratesย crept higher last week as markets reacted to Fed Chair Jerome Powell saying Thursday that he and other Fed officials remain committed to bringing inflation down to 2% and
would not hesitate to raise policyย ratesย further as needed to do so.
This week brings inflation data and retail sales data which both will have an effect on mortgageย ratesย for the week. If data comes in favorably, it could helpย ratesย drop a
bit, however the current outlook shows that inflation could come in higher than expected and pressure mortgageย ratesย higher.
Economic data: There are concerns that consumer inflation readings on Tuesday could come in higher than expected due to a change in how health care costs are accounted for, which would cause
markets to react in a way that could push mortgageย ratesย higher. Wednesday brings wholesale inflation data, although this is generally less of a market mover. Also, if retail sales data
on Wednesday shows a strong economy, it could increase concerns about a possible Fedย rateย hike to come in December, which would pressure mortgageย ratesย higher.
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