This wasn’t supposed to happen. After climbing to 7.79% in late October 2023 – the highest rates since 2000 – mortgage rates took a sharp decline and the feeling was this would continue. But it hasn’t, as rates have hit a 2-month high of 6.94%.
So what’s going on?
Analysts say that the economic news in February – a strong labo market and economy – coupled with uneven inflation developments, caused the Fed to take a cautious attitude towards reducing rates.
And the current mortgage rates are the result.
So what’s next?