- ORIGINAL NEWS
Mortgage rates shoot to 2-month high after new report shows inflation is still hot
- SUMMARY
Mortgage rates spiked recently to 7.14%, hitting a two-month high.
The increase follows government reports indicating persistent inflation.
While rates remain lower than their October peak, the optimism for further declines in the near term has waned.
Despite high rates and home prices, demand for homes remains strong, especially with the spring housing market approaching.
However, the recent rate increase could deter potential buyers.
Data from January shows that the decline in rates led to increased demand, but that momentum cooled when rates plateaued.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Sales of newly built homes soared 8% in December, according to the U.S. Census Bureau, with lower rates acting as the primary driver.”
“Homebuilder sentiment, based on an index from the National Association of Home Builders, has been rising for the past three months as builders reported that lower interest rates were driving buyer traffic to their model homes.”
Negative
“The average rate on the 30-year fixed mortgage jumped to 7.14%, according to Mortgage News Daily. That is the highest level in two months.”
“Mortgage rates hit their last high in October but then fell sharply over the next two months, leveling out at around 6.6% in December. They climbed back over 7% last Friday after another government report on consumer prices came in higher than expected.”