“This too shall pass” is worth reminding ourselves.

We have lost a lot of rate ground in a very short period of time, with the 10‑Year Treasury Yield spiking above 4.17% after being near 3.96% just last week. That move represents roughly a two-thirds percent increase in rates in just five days.

Markets often react quickly to uncertainty, especially when global tensions and inflation concerns collide.

The G7’s discussion of a potential Strategic Oil Reserve release has helped calm energy markets after the initial spike in oil prices. The signal to increase supply, if needed, has taken some pressure off inflation expectations and helped stabilize bond markets.

It’s shaping up to be a busy economic week, with several key reports that could influence interest rates:

• Tuesday: ADP Employment Report
• Wednesday: CPI – Consumer Price Index (inflation)
• Thursday: Weekly Jobless Claims
• Friday: PCE Inflation Report (the Federal Reserve’s preferred inflation gauge)

These reports will provide important insight into labor market strength and inflation trends, both of which play a major role in determining the direction of Treasury yields and mortgage rates.

If inflation continues to cool, it could help reinforce the case for lower rates as we move into the spring.

Website http://www.YourApplicationOnline.com