Mortgage rates continue to climb as the Fed’s finally committed to raise the Federal Funds Rate to combat inflation. Fed action has driven the 10 yr. Treasury yields to 3.3% which in-turn drove 30 yr. fixed rate mortgages to 6%. Mortgage rates tend to climb quickly in response to raising Treasury yields (or the threat of raising rates), and I’m hoping they’ve gotten a little ahead of themselves at this point. Should the Treasury rates settle at their current level, mortgage rates may settle around 5.875%, historically a pretty good rate. Waiting for the rates to go back down? We’ll need a challenging recession and some helps from the Fed’s to accomplish that… not likely at this point.
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