Mortgage Rates Increase on Stronger Economic Data Than Anticipated

Mortgage rates increased last week.

Economic data releases showed stronger economic activity than markets anticipated; continued tight labor markets, resilient consumer spending and strong manufacturing activity. Fed officials continue to message to investors that they are committed to getting inflation under control. Markets are reevaluating expectations about future rate increases and how high the Federal Reserve will raise rates, given that the economy appears to have less risk of contraction in the near term.

Investors will be focused on additional inflation data coming later this week along with comments from the Federal Reserve at the Jackson Hole Economic Symposium, which could provide further insight into near-term Federal Reserve policy