Mortgage rates have been increasing this month, and they could remain elevated for at least the next few months.
Average 30-year mortgage rates started the month low, but they've increased substantially since then and are now nearing 7%. The last time rates were above this threshold was in November 2023.
As the economy balances out and inflation continues to cool, mortgage rates are expected to go down. But recent economic data has come in hotter than expected, making it less likely that rates will drop anytime soon.
Mortgage rates should trend down once the Federal Reserve starts lowering federal funds rate. But the Fed isn't likely to cut rates until we get more data showing that inflation is sustainably slowing.