Mortgage rates increased last week after three weeks of declines.

Payroll and unemployment data showed labor markets remain extremely tight. Manufacturing and services activity data were strong, but delivery delays suggested continued supply chain issues. Comments from Federal Reserve members signaled that their primary concern is addressing inflation. Consumer spending remained high, potentially easing near-term recession concerns from investors. Based on all these data points, markets moved to price back in more Federal Reserve tightening, driving rates higher last week.

Markets will be focused on Consumer Price Index data later this week for further readings on inflation and any potential impacts that could have on Federal Reserve policy.