“Higher mortgage rates were anticipated this year, but the speed of their rise has been breathtaking,” said Jeff Tucker, Zillow senior economist, in a press release. “Record low mortgage rates had been an affordability lifeline during the pandemic, keeping monthly payments in check even while prices climbed quickly. March was the biggest test yet of whether enough buyers can meet the new asking prices to keep home values growing at a record pace.” Mortgage rates have generally surged because of the Federal Reserve’s war on inflation. The Fed has begun a campaign of counteracting today’s rampant inflation by raising its benchmark interest rate in an effort to slow the economy by discouraging borrowing and spending. That’s driven up yields on 10-year treasuries, which mortgage rates typically follow. Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
