Warsh's Speech May Fuel Further Rise in Mortgage Rates

Mortgage rates have been rising for weeks, and the latest data from Freddie Mac shows that the 30-year fixed rate mortgage averaged 6.66% on August 27, up from 6.65% a week ago.

According to Kate Wood, NerdWallet's lending expert, there wasn't much motivation for mortgage rates to move in either direction, but this could change with Fed Chair Kevin Warsh's speech at the Kansas City Fed's annual meeting in Jackson Hole, Wyoming.

Wood warns that if Warsh's speech lacks substance, it could push mortgage rates higher. The Federal Reserve seems more confident that inflation will subside on its own than the markets do, and if fears of continued inflation intensify, this could drive bond yields and mortgage rates up.