Yesterday, Monday the 13th, was the worst day for mortgage rates since 2009. On Friday morning, a report was released stating that inflation was worse than we thought. The Fed is currently in what is known as a “blackout period.” This is when they do not offer public comment on monetary policy. With both of these factors combined, imaginations ran wild. The Fed have been increasing rates by .25% each meeting, however with this inflation report coming in, does that mean we are looking at a .5% hike, maybe even a .75%? Market speculators said “yes.”
The damage has been done and rates went from the high to mid 5% range, to the low 6%’s. It is hard to explain exactly where the rates are today as it depends on many factors like credit, property type, LTV and a few others, but it is safe to say that the average rate is now well above 6%.
