Calendar: What’s driving mortgage rates the week of Sept. 13-17, 2021

Daniel Acker/Bloomberg via Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Mortgage rates are notoriously difficult to predict. They rise and fall based on market sentiment, headlines and a variety of economic indicators. Here’s a look at what could move markets this week.

The big economic news comes Tuesday, when the U.S. Labor Department releases its inflation report for August. Inflation jumped to an annual rate of 5.4 percent in June and July, and economists debate what that means. Did prices soar simply because the previous summer’s economic activity ground to a halt amid a coronavirus-forced lockdown? Or are huge stimulus packages causing prices to rise?

While the rate of inflation doesn’t determine mortgage rates, the two metrics are correlated. And economists say a sustained spike in consumer prices would be accompanied by a rise in mortgage rates, which reached record lows in January.

“Rates will suffer if a return to work is met with wage inflation, which is the enemy of low rates,” says Dick Lepre, senior loan officer at RPM Mortgage.


The calculus behind mortgage rates is complicated, but here’s one easy rule of thumb: The 30-year fixed-rate mortgage closely tracks the 10-year Treasury yield. When that rate goes up, the popular 30-year fixed rate mortgage tends to do the same.

Rates for fixed mortgages are influenced by other factors, such as supply and demand. When mortgage lenders have too much business, they raise rates to decrease demand. When business is light, they tend to cut rates to attract more customers.

Ultimately, rates are set by the investors who buy your loan. Most U.S. mortgages are packaged as securities and resold to investors. Your lender offers you an interest rate that investors on the secondary market are willing to pay.

Learn more:

Written by
Jeff Ostrowski
Senior mortgage reporter
Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal.
Edited by
Senior mortgage editor
Urgent! Rates expected to jump on Fed Day
-- Days  :  
-- Hours  :
  -- Minutes  :
  -- Seconds
Close icon
Compare refinance rates