Get ready for a wild ride, folks! The mortgage rates are soaring higher than a bird on a caffeine high. You see, the Fed’s monetary policy and interest rates are all “data dependent,” which basically means they’re keeping an eye on economic growth and inflation. If the data shows less growth, rates will go down. But if it’s stronger and inflation is higher, well, buckle up because rates are going up, up, and away!

Now, today we had the ISM Non-Manufacturing Index report, which might sound like gibberish, but trust me, it’s a big deal. This report tells us how the service sector is doing, and if it’s doing well, inflation tends to tag along for the ride. And guess what? The index came in higher than expected, with the “prices paid” index rising for the second month in a row. It’s like service sector inflation is doing the cha-cha!

But why should you care, you ask? Well, my friend, it all comes back to mortgage rates. Rates are high because of inflation, and if inflation keeps bouncing like a kangaroo on a trampoline, rates won’t be coming down anytime soon. Today’s reaction was just a taste of what’s to come, as the average lender’s rates shot up to their highest levels in over a week. Talk about a rollercoaster ride!

Now, hold on tight because the next big update is the Consumer Price Index (CPI), and trust me, it’s an even bigger deal than today’s report. So, stay tuned, folks, because this mortgage rate saga is far from over. It’s like a never-ending soap opera that keeps you on the edge of your seat. Will rates go up or down? Only time will tell. But one thing’s for sure, it’s going to be one heck of a ride!


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