Mortgage rates continued to rise last week, and are up more than half a percent so far this year.

Economic data releases pointed to continued supply chain constraints and inflationary pressures. Payroll data released late last week showed much stronger than anticipated job and wage growth, as many expected some slowdown due to the surge in COVID-19 cases in January. All of this points to more hawkish expectations for the Federal Reserve, driving interest rates higher. Markets are pricing in further rate hikes and the potential for a 50 basis point increase in March.

Investors will be focused on consumer price data being released Thursday this week to further ascertain how aggressive the Fed may need to be in fighting inflation.