“Mortgage rates rose on all types of loans this week as the 10-year US Treasury yield hit its highest level since June,” Sam Khater, chief economist at Freddie Mac, said in a statement. “Many factors have led to this increase, including the Federal Reserve communicating that it would reduce its support for capital markets, widening inflation and emerging energy supply shortages which are exacerbating other labor shortages. of work and materials. “
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Will current mortgage rates last?
Mortgage rates saw their biggest increase since the start of this year following the strongest signal that the Federal Reserve will start cutting its asset purchase program, possibly as early as this November.
“The sharp rise in yields has been supported by more aggressive policy statements made by federal banks overseas and likely reflects the fact that the market is collectively reconsidering the way forward for the economy in an environment characterized by inflation. high and declining COVID-19 cases, “wrote Matthew Speakman, senior economist. at Zillow, in a blog post. “COVID cases have steadily declined in recent weeks, and a continued decline would strengthen the Fed’s case for tightening policy, especially if inflation remains high, which looks likely in the near term.”