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Mortgage Rates Stay Flat as Inflation Persists

While interest rates continue to be volatile as markets adjust expectations for Fed rate hikes, mortgage rates ended the week basically unchanged at about 6% for a 30-year fixed rate loan. Economic data and comments from Fed officials last week point to the Federal Reserve continuing to raise the Fed Funds rate until inflation is under control.

Written by Zillow Research on September 14, 2022

Mortgage rates were fairly flat last week.

While interest rates continue to be volatile as markets adjust expectations for Fed rate hikes, mortgage rates ended the week basically unchanged at about 6% for a 30-year fixed rate loan. Economic data and comments from Fed officials last week point to the Federal Reserve continuing to raise the Fed Funds rate until inflation is under control. The Consumer Price Index release yesterday showed more persistent inflation than expected. As a result, investors are now fully pricing in a 75-basis point hike in the Fed Funds rate at the next FOMC meeting, driving up interest rates.

Retail sales and jobless claims data will be released later this week, but the market’s focus is on next week’s rate decision from the FOMC.