Mortgage rates increased last week, reaching heights we haven’t seen in more than a decade.

While markets reacted positively to the Federal Open Market Committee action last week, markets reversed course in recent days to drive rates higher. Inflation, supply chain challenges and labor issues continue to weigh on the minds of market watchers, and may force the Federal Reserve to take more hawkish actions to tame inflation than what is currently being signaled. Economic data showed continued tight labor markets and increasing labor costs, signals of ongoing inflationary pressure, and markets are anticipating continued supply chain challenges with the war in Ukraine and lockdowns in China. Investors will be focused on price indicators released this week to ascertain if inflation is leveling off and what that might mean for future interest rates. In addition, markets are showing concern of a potential recession given central bank actions to curb inflation and global geo-political events.

Markets have been extremely volatile in the past few weeks, and this is likely to continue in the short term.