Mortgage rates moved lower once again, but don’t expect them to stay down for long

“Investors had plenty of bond supply to choose from this week, and inflation data showed a huge pickup in prices,” said Danielle Hale, chief economist at Realtor.com. “Although an increase was expected, core inflation, which excludes relatively volatile food and energy prices, saw its biggest one-month surge in 39 years. The last time inflation surged this high in one month, Freddie Mac’s 30-year mortgage rate was 16.9 percent. While I don’t expect double-digit mortgage rates any time soon, I do expect mortgage rates to follow Treasury yields higher as the combination of abundant supply and concerns about inflation, mean that investors expect higher returns.”