Mortgage rates shoot to 2-month high after hot inflation report [Video]

Mortgage rates shot higher Friday after a monthly government report on wholesale prices showed inflation is still persistent and hotter than most analysts had expected.

The average rate on the 30-year fixed mortgage jumped to 7.14%, according to Mortgage News Daily. That is the highest level in two months.

Mortgage rates hit their last high in October but then fell sharply over the next two months, leveling out at around 6.6% in December. They climbed back over 7% last Friday after another government report on consumer prices came in higher than expected.

“There are two ways to look at recent rate trends in light of the data-driven spikes over the past two weeks,” said Matthew Graham, chief operating officer at Mortgage News Daily. “On one hand, we can take solace in the fact that rates are still almost a percent lower than they were in October. On the other, the optimism for lower rates in 2024 has abruptly given way to skepticism.”

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