Home›Bonds & Rates›Central Banks›Mortgage rates rise to a 3-week high after Warsh Jacks…

Mortgage rates rise to a 3-week high after Warsh Jackson Hole remarks

The average top-tier 30-year fixed rate jumped to 6.81% after lenders adjusted pricing following a bond-market selloff tied to the Fed Chair message.

Reported · Written up by our desk · Central Banks

Mortgage News Daily reports that mortgage rates moved higher immediately after Fed Chair Warsh’s Jackson Hole speech, which the market interpreted as a hawkish signal on inflation.

The speech emphasized that inflation remains too high and that the Fed is committed to bringing it down to a 2.0% target measured by the annual change in the PCE Price Index. Mortgage News Daily says the PCE Price Index was at 3.7%, and even estimates using alternative methods still imply inflation above target.

According to Mortgage News Daily, mortgage rates had been largely flat before the speech, but the bond market reaction led lenders to raise rates. The average top-tier 30-year fixed rate increased to 6.81%, its highest level in just over three weeks.

More like this

Sources