Mortgage rates

In addition to the Russia-Ukraine conflict, persistent inflationary pressures and expected monetary policy moves are contributing to volatility.

The effect of the conflict and upcoming Fed announcements have left much of the industry guessing about what happens next.

Strong economic data was countered by international political developments, sending the 30-year rate lower for the first time in a month.

Inflation data showing a 7.5% increase in consumer prices will likely lead to Federal Reserve moves that apply continued upward pressure.

The latest jobs and economic numbers pave the way for additional upward movement throughout 2022, analysts said.

December's activity was down 18% from November, led by a 23% drop in purchase volume and a 17% decline in rate-and-term refinancings, Black Knight said.

Despite the rising number of COVID infections, investors made no moves that would apply downward pressure.

The central bank’s new tone has many in the industry planning for potential volatility in 2022.

However, economic data points to likely future increases, with investors awaiting numbers from upcoming jobs report.

Taper announcement, slowing COVID cases help remove downward pressure, leading to increases across all loan-term types.