The economic recovery continued in the United States. The recovery, combined with additional government stimulus on the way, lead to mortgage rates ending the week at their highest levels in a few months. The pandemic-related reduction in economic activity led to a downturn in inflation last year – which was one of the factors responsible for record-low mortgage rates. Many investors are now concerned inflation may be on the rise. Fed Chair Powell suggested this week that current policy will remain in place for a while as the economy is “a long way from our employment and inflation goals.” Even though some investors are worried about rising inflation, Powell appeared to be less so.
So what does this mean for you and your mortgage? It means that rates are on the rise, but are still very good in the grand scheme of things. As the spring and summer home-buying season begins to heat up, there are still some great mortgage rates available to consumers as the rates are still low, and inflation is still in a decent spot. Feel free to reach out to Scott Bennett at 503-703-4699 or firstname.lastname@example.org to talk about your current situation.