Federal Reserve Chairman Jerome Powell doesn't see any good reason why average 30-year mortgage rates pole-vaulted over the 3% line in the last week, to the highest level since mid-June.
Rates have been following along as the interest on Treasury bonds has skyrocketed due to worries that an improving economy will stoke inflation. But Powell tells members of Congress that inflation is still "soft" and that the road ahead for the economy is "highly uncertain."
For borrowers, "it's time to wake up," writes Matthew Graham, MND's chief operating officer.
"Following large declines in the spring, consumer prices partially rebounded over the rest of last year. However, for some of the sectors that have been most adversely affected by the pandemic, prices remain particularly soft," he told members of the Senate Banking Committee on Tuesday.
The Fed chief says inflation remains below 2% — the central bank's goal. And, though things should improve later this year, "the economic recovery remains uneven and far from complete, and the path ahead is highly uncertain," Powell says.
"It's beginning to look as if last week’s rises in mortgage rates might stick," writes Peter Warden, editor of the website The Mortgage Reports. "They may not have much further to climb. But it’s hard to currently see reasons why they should fall back significantly anytime soon."
Given the risk that rates will rise further, Warden is recommending that his readers lock a rate now, whether they've got a loan that's closing in seven days or 60 days.
#lynchburgva #lynchburgvirginia #lynchburgliving #lynchburgvarealestate #lynchburgvarealtor #lynchburgvahomes #lynchburgvabusiness