Mortgage Rates Drop Back Below 6.00%

Mortgage rates declined last week, dropping back below 6.00.

Both equity and fixed income markets were up during the week, with light economic data releases. Markets are struggling to price in the competing dynamics of persistent high inflation and the impact of Federal Reserve rate hikes. The Fed has indicated they are focused on getting inflation under control through rate increases. But those rate increases will slow economic growth and that could lead to a recession. Views on the short term increases in the federal funds rate drove interest rates up sharply early this month, but rates declined from highs last week as recession concerns raised the potential for slowing rate increases in the future.

Investors will have plenty of data to react to this week; GDP and manufacturing data will provide insights into economic activity, along with pricing data releases to assess recent inflation levels.”