Mortgage Rate Dynamics

Jaspreet explains how rising inflation and interest rates from the Federal Reserve create upward pressure on mortgage rates. As inflation concerns mount, people become hesitant to lend to the government, leading to increased treasury yields. This, in turn, necessitates higher returns on riskier investments like mortgages, which are currently around 7%. Despite these pressures, credible sources suggest that mortgage rates may decrease by year-end, highlighting the importance of staying informed.