Mortgage rates continued to rise last week.

With economic data showing sustained tight labor markets and rising prices for goods and services, markets began anticipating more aggressive actions by the Federal Reserve to address inflation. The Federal Open Market Committee increased the federal funds rate target by 0.25% at the March meeting last week, in line with expectations. But additional information from that meeting revealed that the Fed has increased its forecast of future inflation rates and will be more hawkish in addressing this going forward, leading to additional upward pressure on interest rates.

Investors will be focused on any clues from the Fed regarding the magnitude of future rate increases and the pace of balance sheet reductions, which could further impact rates in the coming weeks.