Markets have been very volatile due to the Russian invasion of Ukraine and investors are shifting out of risky assets – depressed rates, despite concerns over rising prices for goods and services and fast-increasing energy costs that have pushed U.S. gas prices higher.
Mortgage rates moved lower last week, dipping below 4%.
Markets have been very volatile due to the Russian invasion of Ukraine. Amidst this uncertainty, a “flight to quality” – investors shifting out of risky assets – depressed rates, despite concerns over rising prices for goods and services and fast-increasing energy costs that have pushed U.S. gas prices higher. Last week’s data showed continued supply chain issues, inflationary pressures and stronger-than-expected job growth. But markets were revising expectations for how quickly the Federal Reserve will raise rates, with potential headwinds from Russian sanctions likely to slow economic growth.
Data releases on inflation and jobless claims later this week could impact rates, then markets will turn attention to the Federal Open Market Committee (FOMC) meeting next week.
