Mortgage rates continued to rise last week.
With light economic data in the prior week, markets were reacting to comments from Fed officials that action will be taken “expeditiously” to address inflation. Investors appear to be pricing in 50-basis-point rate hikes in each of the next four Federal Open Market Committee meetings. Fixed income markets remain volatile as investors balance the timing and amount of Federal Reserve action against the risks of a near term recession, along with uncertainty in Ukraine and potential impacts to the global economy.
The Federal Reserve is now in a blackout period prior to the May meeting, so markets will focus on economic data releases later this week, including economic growth measures, inflation indicators and employment costs and wages. With plenty for investors to react to, rates are likely to move based on all of this data late in the week.