Did the Fed's Powell just tap the brakes on mortgage rates? Don't bet on it

Did the Fed's Powell just tap the brakes on mortgage rates? Don't bet on it

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." Will his reassurances help push mortgage rates back down? Experts say borrowers who want to be on the safe side should lock one of today's mortgage rates — because they could go higher. Just weeks after dipping to new all-time lows, mortgage rates have suddenly come roaring back. On Monday, Mortgage News Daily had 30-year fixed-rate mortgages averaging 3.10% — way up from 2.86% on Friday Feb. 12, ahead of Presidents Day weekend. For borrowers, "it's time to wake up," writes Matthew Graham, MND's chief operating officer. Mortgage rates tend to track the yield (interest) on the 10-year Treasury note, which has soared to places …
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