Geopolitical Tensions Push Rates Slightly Higher
What Did Rates Do This Week?
Mortgage rates increased slightly this week as markets reacted to ongoing geopolitical tensions in the Middle East.
Continued uncertainty surrounding the conflict has kept investors focused on the potential impact to global energy prices and inflation. When oil prices rise, inflation concerns often follow, which can put upward pressure on mortgage rates.
While no major economic reports drove the market this week, uncertainty surrounding global events was enough to keep bond markets under pressure, causing mortgage rates to edge higher.
What to Look Forward to Next Week
Next week, investors will turn their attention back to economic data, including inflation reports and Federal Reserve commentary.
Markets will be looking for signs that inflation continues to cool. Softer inflation data could help mortgage rates stabilize, while stronger-than-expected reports or continued geopolitical uncertainty could keep upward pressure on rates.
Lock or Float Bias
Current Lock/Float Bias: Slight Lock
With mortgage rates moving higher and uncertainty still surrounding global events, borrowers closing in the near term may want to consider locking their rate. Those with longer closing timelines may choose to float, but should be prepared for continued market volatility.
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