Mortgage rates continued to decline last week.
Expectations for how the Federal Reserve will attempt to tame inflation while avoiding a recession are being priced into mortgage rates today. Despite low unemployment and ongoing inflationary pressures, markets are beginning to show concern over slowing economic growth as central banks tighten monetary policy. The result is softening rates. Although the Fed has maintained their stance on 50 basis point rate increases at the next few meetings – which would put upward pressure on mortgage rates – investors seem to be betting that the economy could sputter and the Federal Reserve will have to slow down rate hikes sooner than previously anticipated.
Markets will be analyzing lots of employment related data this week to ascertain the potential direction of the economy based on labor markets and what impact that may have on rates going forward.
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