It’s a tremendously important and volatile time for the market and especially for interest rates. The biggest inflation surge in decades pushed rates to their highest levels in 14 years by mid June.
While it was never likely to contain too many surprises, this week’s much-anticipated Jackson Hole speech from Fed Chair Powell served as an important reminder as to why rates have risen so sharply in August.
The average mortgage rate headline among major news networks suggests things improved this week. The average headline is wrong.
Markets and mortgage rates are currently trying to reconcile the big narratives that have accounted for most of the movement in 2022.
The big monthly jobs report from the Labor Department (officially “The Employment Situation) is one of the most reliable sources of volatility for interest rates.
Mortgage rates have been all over the map recently, both in terms of their movement and in their variation between lenders. The disconnects are so big as to require a deeper explanation.