Mortgage rates rose again this week and appear primed for additional modest gains following the Federal Reserve's policy statement on Wednesday. The market had expected the federal funds rate cut for weeks. What sent bond yields upward was the Fed surprising many investors by not pointing to future rate cuts. Mortgage rates rose late last week following a positive surprise from retail sales data, capping a seven-day increase that marked the largest rate runup since 2016.
The attacks on oil facilities in Saudi Arabia brought rates back down slightly on Monday, after investors sought out inflation-protected bonds, fearing that rising oil prices would ignite inflation. Still, mortgage rates are now noticeably higher than lows reached just two weeks ago, and it appears, at least for now, that the period of historically low mortgage rates may well be a thing of the past.
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