Mortgage rates increased slightly over the last week in very volatile markets.

News of the omicron variant caused concerns of slower economic growth, leading to decreasing rates – even further amplified by light liquidity in markets with the Thanksgiving holiday week. Fed Chair Powell's testimony to Congress sent rates back up earlier this week, as Powell commented that inflation is now a bigger concern for the Federal Reserve and indicated that tapering of bond purchases may be accelerated. Economic data continues to show struggles in the supply chain that indicate higher inflation may be more persistent than previously expected. Markets will be analyzing jobless claims and employment data later this week with expectations for continued job and wage growth that could keep the economic recovery on pace.

The big wildcard for markets – and mortgage rates – will be the impact the omicron variant may have on economic recovery.

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