Mortgage rates display end-of-year increase

Despite a wave of new COVID-19 cases, mortgage rates started 2022 on an upswing. The average rate on the popular 30-year mortgage marked 3.64 percent on Monday, Jan. 10 after a two-week increase in December.

Available economic data was slow due to the week of holidays, though markets showed pricing reflected continued economic recovery amid a spike in the COVID-19 Omicron variant.

Most indicators continue to point to inflationary pressures, with tight labor markets and challenges in addressing supply chain issues.

There is optimism among market participants that the new COVID case surge will not be as impactful to economic activity as prior waves but remain wary that potential shutdowns could slow economic growth.