We had a nice respite from higher mortgage rates for a few weeks. 30 year fixed interest rates got as high as 7.25% around the first of November 2022. Then they slowly started to go down reaching as low as 5.75% the end of January. Today 30 year fixed rates are around 6.50%.
Why? Still the same story. The greatest enemy of mortgage rates is inflation. And we saw more economic reports last week that suggest inflation is not easing as quickly as the Fed wants it to. This was a clear indication that the Fed will continue to bump it’s core rate this year, and that scared the markets. And mortgage interest rates rose quickly.
Fingers crossed that inflation will ease!