Mortgage rates

After falling earlier in the month on expectations of less aggressive monetary policy, inflation concerns early in the week drove averages higher.

Economists disagree on whether the latest numbers will mean the Fed will increase rates by 50 or 75 basis points.

Rates are expected to increase to 3.75% to 4% by the end of the year, and it's anticipated to stay high for longer.

The 30-year average has declined by 55 basis points in two weeks.

But private-label securitization issuance this year is expected to be lower than 2021's activity.

LendingTree participants made 11 fixed-rate mortgage offers for every one ARM in the first half of 2022. Last year it was a 41-to-1 ratio.

Investors had largely factored in an anticipated increase in the federal funds rate, but latest GDP numbers could result in more volatility.

Analysts say draining reserves from the banking system will reach a practical limit in the first quarter.

Largely, economists surveyed agreed with the decision by the Fed to continue to raise interest rates to slow inflation.

The current 30-year rate is now nearly double its average from a year ago.

Following their largest drop in over a decade one week ago, averages rapidly swung upward as recession talk receded.

Although refinances picked up after the July 4th holiday, they failed to offset a larger decline in purchases.

Higher rates are also affecting the share of loans that actually go all the way to closing, Black Knight found.

The 30-year average has made a steep reversal over the past two weeks following a large acceleration in mid-June.

The 30-year average dropped for the first time in four weeks after surging more than 70 basis points earlier in the month.

For the 10th consecutive week, the brokerage’s Demand Index declined, this time by the largest share in over two years.

Recent remarks from Federal Reserve Chair Powell suggest more upward movement is ahead.

Some economists see a recession as inevitable but other markers, like the unemployment rate and consumption indicators, point to a resilient economy.

Many cities with higher shares of list price drops also appeared on a list of the most overvalued areas in the country.

If it works as intended, by calming inflation, it will help to keep mortgage rates low in the long-term.