Mortgage Rates climbing higher!!! May 22, 2023

For the last week we have seen nothing but up for Mortgage Interest Rates.  Not good for the housing market, especially as we enter the prime season of homebuying – spring and summer!!!  How high are they going?  Right now most lenders are quoting rates around 6.625% with some lenders as high as 7.0%.  Dang!  So what is the cause of this slingshot higher of rates?

In general, the market is realizing the possibility the Federal Reserve may have been right in its evaluation for the need to keep rates higher for longer.  Recent economic data has confirmed the economy is stronger than expected.  Consumers are still spending despite the higher cost of spending.  This keeps an upward pressure on inflation – which is the enemy of mortgage rates.  Keep fingers crossed that inflation gets in check!