Mortgage rates hit 15‑month high as Fed policy and inflation drive markets

Mortgage rates have climbed to a 15‑month high, with the national average for a 30‑year fixed‑rate mortgage rising to 7.07%. The increase from February’s 6.16% reflects the Federal Reserve’s higher‑for‑longer stance, making homeownership more expensive for borrowers.

Market participants are closely monitoring the Fed’s upcoming meeting, where officials are expected to weigh the possibility of further rate hikes. Fed Chair Kevin Warsh has refrained from signaling any immediate easing of monetary policy, reinforcing expectations that rates will remain elevated for an extended period.

U.S. Stocks rallied on Friday, erasing some of the week’s losses as inflation data aligned with economists’ expectations. The S&P 500 climbed 1%, while the Dow Jones Industrial Average and Nasdaq Composite both gained 1.1%, a gain partly driven by a pullback in oil prices, with Brent crude falling 2.3% to $105.12 per barrel.

The latest Consumer Price Index report showed a 3.4% year‑over‑year increase in prices, consistent with forecasts. Treasury yields displayed mixed movements as investors digested inflation data and recalibrated their rate hike expectations. The two‑year Treasury yield rose to 4.61%, while the 10‑year yield edged lower to 4.95%, suggesting confidence that inflation may moderate over the long term.

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