Mortgage rates moved higher again last week.

Fed Chair Powell noted late in the prior week that the Fed is committed to containing inflation, which will likely result in some economic pain. While data is pointing to easing pressure on prices in several sectors, the level of economic activity appears to give the Fed more runway to raise rates before triggering recession risk. Employment data, while softer than prior weeks and months, still highlights a tight labor market and inflationary pressures pushing up wages. Investors are adjusting expectations for short term interest rates given these results, now expecting rates to increase more and stay at elevated levels for a longer time.

Markets will be focused on comments from Fed officials before they go into a quiet period in front of the September FOMC meeting later this month.