US Mortgage Rates Hit 15-Month High as Fed Keeps Pressure on Inflation

Mortgage rates in the US have reached their highest levels in 15 months, climbing to 7.07% for a 30-year fixed-rate mortgage.

This significant increase reflects the 'higher-for-longer' interest rate outlook adopted by financial markets and is largely attributed to the Federal Reserve's firm stance on maintaining elevated interest rates to combat inflation.

The Fed, led by Chair Kevin Warsh, has signaled no immediate easing of monetary policy, reinforcing expectations that rates will remain high for an extended period.

This approach underscores the central bank's commitment to curbing inflation, even if it risks slowing economic growth.