Hot inflation data sends mortgage rates to new 2024 highs

Bond market investors are convinced that the latest inflation numbers indicate the Federal Reserve will not cut rates in June. At Inman Connect Las Vegas, scheduled for July 30-August 1, 2024, attendees can expect to gain valuable insights and information to navigate the current business landscape with new opportunities. Mortgage rates have surged to new highs in 2024 following discouraging inflation reports, causing potential homebuyers to step back. Purchase loan applications decreased by 5 percent last week compared to the previous week, and 23 percent from a year ago. The Consumer Price Index data for March showed a 3.5 percent rise from a year ago, pushing 10-year Treasury bond yields up 19 basis points to 4.56 percent. Mortgage rates for 30-year fixed-rate loans saw a significant increase, climbing to 7.34 percent. With inflation numbers indicating no rate cuts in June, bond market investors are adapting to the market conditions. Despite some positive indicators in the economy, mortgage rates continue to rise, prompting an increase in refinancing requests. Subscribe to Inman’s Mortgage Brief Newsletter for weekly updates on mortgage news. For inquiries, contact Matt Carter via email at Matt@Inman.com.

Bond market investors, who fund most mortgage loans, are increasingly convinced that the latest inflation numbers indicate the Federal Reserve will not cut rates in June. Mortgage rates are rising to new highs in 2024 after a discouraging inflation report pushed the prospect of rate cuts further into the future. Applications for purchase loans have decreased, and yields on 10-year Treasury bonds have increased, indicating where mortgage rates are headed. Despite some economists suggesting that the inflation numbers are not as alarming as they seem, bond market investors remain convinced that the Fed will not cut rates in June. As a result, mortgage rates continue to climb, prompting a rise in requests for refinancing as borrowers try to lock in lower rates. The market outlook for mortgage rates remains uncertain as investors anticipate the Federal Reserve’s next move.

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